The pay gap between boardroom executives and employees is continuing to widen, research reveals.
Over the year to 30 June 2004, the average total earnings received by directors of the UK’s 350 leading firms rose by 16.1 per cent, according to Income Data Services’ (IDS) Directors’ Pay Report 2004.
Yet the average total earnings of all employees increased by only 4.3 per cent over the 12 months, the report shows.
The IDS survey found that the directors of FTSE 350 companies today have an average salary of £213 for every £100 of wages paid to them in 1998.
By contrast, managers and professionals are getting £127 for every £100 of salary they earned in 1998.
The apparently widening pay gap comes despite a number of high-profile campaigns in recent years against ‘fat-cat’ pay, and successful shareholder rebellions that have seen leading firms such as Tesco and GlaxoSmithKline reduce pay outs to their top directors.
Last week, Personnel Today reported that analysts at KPMG had called on HR to play a more active role in deciding executive pay to prevent accusations over fat-cat pay settlements.