Recent research shows that wage inequality is accelerating in Britain, with the maximum set to win 215 times the average salary for 2020. It also debunks the arguments made in support of their amazing income.
Britain's bosses are pocketing an increasing share of the income of the nation, according to a report of the High Commission for payment to be published tomorrow. Like most people in the country facing the biggest decline in household income for three decades, a small minority at the top are awarding a growing segment of the wealth of the United Kingdom.
The top one-thousandth of the UK population now work receives 5 percent of revenues, a proportion equivalent to that of the 1940, the report said. If these trends continue, the income of the highest paid, representing 14 percent of the national total in 2030 - the same proportion as in 1900.
The independent commission was created in November to discuss increasing the pay of the above. Its first report concludes that during the Labor was in power, the top income grew by 64.2 percent, while a source of income increased 7.2 percent during the same period.
The study accuses the companies and governments that "can not cope with the dramatic growth of pay on top" despite growing public anger at the growing gap between the benefits for executives and hardening of the circumstances for the rest of the country.
The findings are a blow to David Cameron's attempts to emphasize that "we're all in this together." The Government has appeared flat feet in their attempts to persuade senior executives and bankers to reduce wages and bonuses they give to themselves, particularly as the effects of the recession still keenly felt by the rest of the country.
Rising wage increases above the heads has been caused, in part, by attempts to link pay and performance bonuses, according to the Commission. It also blamed weak control of companies by their shareholders.
Currently the average salary of highest paid CEOs of more than half a million pounds. By 2020 this figure is expected to be 1 million pounds.
Many of the largest pay packages have been granted to the financial sector, representing one third of the top 0.1 percent. Their pay is driven by bonuses and stock options that far exceed their basic salary.
The chief executives of FTSE 100 companies earn an average of £ 3.7 million - or 145 times the average wage. 2020 is expected to pay 214 times more than average.
The committee believes that if companies were forced to be more open about how much of their profits go to executives rather than shareholders, bonds slowed in
Deborah Hargreaves, the chairman of the committee, said: "This is the clearest evidence yet that the gap between the earnings of citizens and the business elite is expanding rapidly and is out of control."
Ms. Hargreaves believes that the importance of dealing with high wages is as much an economic and moral concern. "You can express moral outrage, but if all profits go to the top, which is going to get the economy going again when average wages are not even keeping up with prices?"
The Business Secretary, Vince Cable, launched a consultation on corporate governance and executive pay last year, whose results were published next month.
In response to the report, said. "What is impossible to justify the fact that the income gap at the top continues to increase, even when not justified when the bankers are rescued by the state and still require larger quantities that are what people find inexcusable. It is clear that something must be done to strengthen the liability of shareholders in this area, because the moment we are either resign or not to practice it. "
The increases in executive pay have drawn criticism from all sides. Before the elections last year the Conservative MP Kenneth Clarke said he was "astonished" that the British were "so relaxed about the huge gap opened up between the very rich and usually paid in the last 12 years."
Despite the phone number of executive pay packages, a report last week by the Institute of Fiscal Studies showed that the average income could fall 3 percent this year, the biggest drop since 1981, because new homes levels of 2004-05.
Paul Johnson, director of the IFS, said. "We have seen people being squeezed average at least since the 1980 what we see are that the incomes of the majority fall by 3 or 4 percent, so when people see a significant contraction in levels of life that may well affect the way they see the top.”
Labour MP Anne Begg, the chairman of the House of Commons Work and Pensions Select Committee, said: "The families and working people are being squeezed as the cost of living rises, and the policies of the Conservative government led by While Labour does not help it. present the ideas to strengthen communities and help the next generation to do better against the Government cuts VAT charged and instead are putting the economy in the slow lane’s conservative government led by it hurts It does not work. "
The rich do not deserve?
Bart Becht
The executive director of Reckitt Benckiser
Paid £ 18.2 million last year, 702 times the national average wage
The company behind household products such as Cillit Bang and Air Wick knows how to make executives feel appreciated. Becht credit, charitable donations are substantial. In 2009 was the highest paid employee of the PLC in the UK. Retires later this year, no doubt, with a pension commensurate with their pay package.
Frank Chapman
The executive director of British Gas
Paid £ 28m last year, 1.081 times the national average wage
As customers struggling to pay rising gas bills last winter, Chapman was reaping the benefits. His basic salary of £ 1.14my the bonus of 1.6 million pounds were boosted by a £ 5.26m greater incentive plan long term and £ 15.5 million share options held in September.
Mick Davies
The executive director of Xstrata mining
Paid £ 27 million in 2009, 1042 times the national average wage
Davies is one of the highest salaries in the FTSE 100. Assets have expanded giant coal mining, despite concerns from environmentalists. This summer the company addresses Friends of the Earth in court over plans to build worlds largest mine in Australia.
Martin Halusa
Chief Executive Officer, Apax Partners
Paid £ 13 million in 2010, 502 times the average wage in the UK
The group of private equity behind names such as the chain of high street Watch New witnessed their profits soar during the recession. Private equity groups have been accused by politicians and unions of "behaving like locusts" by "asset stripping, cutting jobs and paying outrageous rewards."
Bob Diamond
Barclay’s chief executive
Income of up to £ 27 million if their stocks and bonds to pay, 1042 times the national average wage
Diamond did himself no favors when he said that "the time for remorse is more" and that the bankers should stop apologizing. After a salary of 6.5 million and £ 250.000 pounds in bonds, which is also in line for a period of £ 6.75m of shares that could afford in the future? Share offerings in the last five years as some 13.8 million pounds.
The myths of reality...
"Much money is needed to get the best executives
That assumes the majority are brought, when 59 percent of CEOs in the FTSE 100 were already in the business for five or more years.
"Being a CEO is risky, so they should be compensated"
Hardly. Only six CEOs left FTSE 100 companies in 2009, a turnover rate of 6 percent, which is less than half the national average.
'Large pay packages are linked to business success”
What about the salary cap for bankers who caused the crisis? In the past 10 years, CEO pay has quadrupled while stock prices have fallen.
"Bond large means better results"
Not necessarily. The investigation suggests performance-related pay works 50 percent of the time - and the bonus culture bankers did not stop leading us all to the crisis.
"Without the big pay packages, executives will be attracted overseas'
Only one FTSE 100 company has sacked its chief executive had a rival in the last five years - and that was for a rival British firm.
"Our high salaries are in line with other leading countries'
Is significantly higher than the rest of Europe - is less than in the U.S., but its executive compensation is 170 percent higher than the rest of the world.
"Very well-paid people in the biggest boost to business success"
Have a wage gap between staff at the top and bottom of a company can damage personal and business relationships. Just look at how the bankers are popular now.
"The best results have always grown faster than average wages"
Until 30 years ago, the gap has been declining. From 1949 to 1979, the percentage obtained by the top 0.1 percent fell from 3.5 percent to 1.3 percent.
The earnings of a skyscraper in the same percentage of average pay”
No. The profits are the top 0.1 percent rose by 64.2 percent in the last decade, while average wages rose just 7.2 percent.
"Attempts to regulate executive compensation would be bad for the economy’
When you pay disproportionately high rewards in a sector - such as funding - is more difficult to attract good graduates in other vital areas of work.
0 comments:
Post a Comment