FTSE CEO salaries underline need for mandatory pay ratios says AAT
6 January 2020
FTSE 100 CEOs need to work until 5pm on Monday 6 January 2020 to earn the same amount of money as the average worker receives in a year, according to High Pay Centre figures published today.
Commenting, Olivia Hill, Chief HR Officer at AAT said:
“The time for meaningful change in the area of executive pay is long overdue. According to the CIPD in 2018, the mean pay ratio between FTSE 100 CEOs and the pay package of their average employee is a staggering 145:1. While new regulation now requires all listed companies with more than 250 employees to report their Executive Pay ratio from this year onwards, they are not compelled to take action to improve any major disparities.
“The AAT Corporate Governance survey found that 41% of AAT members wanted pay ratios across the board to be restricted to no more than 20:1, with others supporting a mandatory pay ratio along the lines of the 75:1 deployed by the John Lewis Group.
“Not only would we like to see a mandatory pay ratio, but it should be expanded to cover many more companies than those who employ more than 250 workers, which accounts for less than 1% of British firms.”
