22nd Nov 2011
A year-long High Pay Commission inquiry concluded that soaring executive pay has damaged British businesses.Highlighting the 4,000% salary increase enjoyed by FTSE company executives over the last 30 years, the study argued that "stratospheric" have channelled the country's wealth to the top 0.1% of people in the country. The dramatic contrast with pay increases experienced by the average UK worker undermines productivity and damages trust, the report argued. The typical employee's wages have grown only three-fold to a "modest" £25,900 per year since 1980 when average salaries amounted to £6,474. The report, ‘Cheques with Balances: Why Tackling High Pay Is In The National Interest’, stated: "There appears to be little truth in the myth that pay must escalate to halt a talent drain in executives. The growing pay gap between the top 0.1% and everyone else is increasing public disillusionment, damaging trust and fuelling the view that business leaders are in it for themselves."