This week’s labour market release suggests that, for most workers, wage growth remains stuck in the doldrums even as unemployment falls to new lows, with real wages still struggling to regain the ground lost in the wake of the 2007-8 financial crisis. The leaders of the UK’s biggest companies suffer no such problem. A recent report from the High Pay Centre, which surveys FTSE 100 CEOs’ annual pay settlements, finds that median executive pay rose 11 per cent between 2016 and 2017. This means the average FTSE 100 CEO is now paid 77 times what the average employee at their company is paid, and 167 times the average wage nationally. The average masks large variations: for a handful of companies, the within-firm pay ratio is more than 1,000 to 1. Shareholder objections – and public outcry – only seem to do so much to curb extreme pay growth at the top. Take the example of the FTSE’s highest-paid CEO – Jeff Fairburn of Persimmon plc, a … [Read more...] about ConsumerBusinessSpotlightConsumerBusinessSpotlightConsumerBusinessSpotlightConsumerBusinessSpotlightConsumerBusinessSpotlight Excessive CEO pay is a symptom of an economy that rewards owners not workers
The pay of company chief executives has soared by a staggering 11 per cent in the past year, with median salaries of just under £4 million, a new study has revealed. The rise compares to 2 per cent for full-time workers. Research by the Chartered Institute of Personnel and Development (CIPD) and the High Pay Centre among the pay packages of chief executives in FTSE 100 firms showed median pay rose by 11 per cent. Under the "mean" measure, which is affected more by this year's very large payouts to chief executives (CEO) at Persimmon and Melrose Industries, pay rose by 23 per cent to £5.6 million, said the report. Women make up 7 per cent of FTSE 100 chief executives but earn 3.5 per cent of total pay, said the report. Peter Cheese, chief executive of the CIPD, said: "Despite increased investor activism and the planned introduction of pay ratio reporting, the evidence suggests that very little is changing when it comes to top pay in the UK. "It's disappointing to see that CEO … [Read more...] about CEO pay packets soar by 11% in just one year, study reveals
Denmark’s biggest political party used the May 1 holiday to launch a campaign targeting pay levels for chief executive officers.Henrik Sass Larsen, a key spokesman for the opposition Social Democrats, said “we urge corporations to include corporate social responsibility clauses,” during a speech reported by Ritzau on Tuesday.Sass Larsen, a former business minister, said “the massive redistribution” in pay that took place in the U.S. under former President Ronald Reagan and in Britain under former Prime Minister Margaret Thatcher is “one of the most marked transitions that’s taken place in recent political history.”Most polls suggest that the bloc led by the Social Democrats would defeat the center-right coalition of Prime Minister Lars Lokke Rasmussen, with elections due to take place no later than June next year. … [Read more...] about CEO Pay Must Be Reined In, Biggest Danish Political Party Says
Drugs firm Shire, which employs hundreds of people between its Co Meath campus and at its head offices in central Dublin, faces fresh criticism over its executive pay policy from a leading investor advisory group as a crunch week approaches.Shareholders will vote on pay and other matters at Shire’s AGM on Tuesday, a day before Japan’s Takeda must decide whether it will make a takeover bid.Pensions & Investment Research Consultants, or Pirc, believes that Shire CEO Flemming Ornskov’s maximum potential bonus is “excessive” at 780% of salary, even though Mr Ornskov’s total pay last year fell to $5.3m (€4.28m) from $10.6m, after a disappointing year for the firm, which is registered in Jersey, headquartered in Dublin and listed in London.Two years ago, almost half of its shareholders voted against Shire’s executive pay plans and then won 93% support in 2017. Two other shareholder advisory groups, ISS and Glass Lewis, said they recommended … [Read more...] about Shire faces fresh criticism over CEO pay in crunch week
The typical big-company CEO raked in $11.5 million last year in salary, stock and other compensation, according to a study by executive data firm Equilar for The Associated Press. That's an 8.5 percent raise from a year earlier, the biggest in three years. The bump reflects how well stocks have done under these CEOs' watch. Boards of directors increasingly require that CEOs push their stock price higher to collect their maximum possible payout, and the Standard & Poor's 500 index returned 12 percent last year. Over the last five years, median CEO pay in the survey has jumped by 19.6 percent, not accounting for inflation. That's nearly double the 10.9 percent rise in the typical weekly paycheck for full-time employees across the country. Here are some other highlights from the AP's annual package of stories on CEO pay, which was published this past week. To see the full roundup, please visit apnews.com/tag/SpecialReport:CEOpay THE TOP OF THE CHARTS The top-paid CEO last year was … [Read more...] about CEO pay by the numbers: How big were last year’s raises?