Saturday, August 18, 2012

What recession? Top bosses' pay rockets while workers Continue to see a Decline in Wages

The pay of Britain's top company bosses has soared still higher, rising by more than five times that of ordinary workers, who have seen a decline in wages in real terms.

The total pay package for the typical FTSE 100 chief executive hit £3m for the first time in 2011 – an average rise of 8.5 per cent – despite it being a brutal year for investors.

The average pay rise for workers nationally was 1.6 per cent, less than half the pace of inflation, placing pressure on household disposable incomes and endangering growth prospects. The Chancellor, George Osborne, faces calls from businesses and the City to draw up a new growth plan when he returns from his summer holiday, and to reverse the Government's hard line on deficit reduction.

To add to investors' grievances, the FTSE 100 fell 6.5 per cent during 2011, leaving them considerably worse off than chief executives. Read More