Ordinary workers are taking pay cuts and being made redundant whilst chief executives continue to receive excessive annual pay packets. According to a report released by The Telegraph, chief executives’ excessive pay packets have grown more than 1200% within the past 25 years and those pay packets continue to grow.
Workers within those same companies are being asked to cut back due to the debt crisis yet executives within those organizations are awarding themselves huge annual increases. This revelation is setting the stage for a huge protest amongst government and the general public alike. In fact, government is already considering legislation to prohibit such excesses.
The report shows that chief executives of FTSE 100 companies have had annual salary increases from £300,000 25 years ago to an average of £4 million at the current time. This is with adjustments for inflation which doesn’t make it any easier to cope with when these huge pay rises have absolutely nothing to do with performance. In fact, some of those very same FTSE 100 companies are recording annual losses yet chief execs are getting pay rises.
In January it is said that ministers are going to reveal plans to limit unjustified increases in executive salaries as they have been spiralling uncontrollably. The study was conducted by the Business School of the University of Exeter. According to The Telegraph, interviews with directors from Lloyds Banking Group, Prudential and Marks & Spencer were the basis of the findings.
Some of the directors and executives interviewed went as far as saying that the amount of pay they receive is getting too much attention. It is probable that these kinds of comments will ignite further anger and controversy as the entire rest of the workforce in the UK is being asked to cut back for austerity measures while chief executives and directors are awarding themselves huge salary increases.
