Monday, 16 May 2011

Pay gap widening to Victorian levels

High pay commission forecasts top earners' slice of national income will rise from current 5% to 14% by 2030
The Guardian

In 2010, the average annual salary of FTSE 100 chief executives was more than £3,747,000, 145 times greater than the national median full-time wage of £25,800. Executive pay dipped slightly during the recession, but the report predicts that by 2020 the ratio will have spiralled up to 214:1.

Britain's top pay bonanza knows no bounds

High pay matters economically as well as morally and socially. The unsustainable remuneration system must be reformed 

See most recently Peter Wilby's excellent analysis in The Guardian:

Anxiety keeps the super-rich safe from middle-class rage

Letters in The Guardian included this one:

The high pay commission's report is indeed shocking. Perhaps of more concern is the fact that while these excesses are set to worsen there are 3.5 million people in the UK who are paid less than £7 an hour. Of the 2.8 million children in the UK living in poverty in 2008-09, a shocking 59% of them have one or both parents in work. People are rightly angry about high pay but we must also focus our attention on ensuring that Britain's biggest companies, who continue to pay poverty wages while awarding executives extremely generous wages, reward their workers with living wages.

Louise Rouse
Director of engagement, Fair Pensions

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