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Latest NewsExecutive payPay & benefits

UK chief executive pay and benefits continue to soar out of all proportion

by Mike Berry 3 Aug 2006
by Mike Berry 3 Aug 2006

Pay and benefits of chief executives of the 100 biggest UK firms continued to “soar out of all proportion” to the rest of the workforce, according to a report by Labour Research.

The independent research organisation said the UK’s top executives received average pay rises of 10% last year, more than twice as high as increases across UK industry.

Leading chief executives received an average of £1.6m in pay and benefits last year â€“ but still a fraction of the money earned by their boardroom counterparts in the US, the report said.

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Neal Moister, who carried out the research, said a code on corporate governance introduced three years ago aimed at governing pay in top companies was “clearly having little impact” in some firms.

He added: “The pay of some of these chief executives seems to be spiralling out of control. There seems to be no limit on how much they can earn.”

Mike Berry

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