BRITISH chief executives’ pay is on track to exceed their employees’ median earnings by more than before the Covid-19 pandemic as profits and executive bonuses rebound, a report from Britain’s High Pay Centre showed on Monday (May 23).
The ratio of executive pay to median earnings had fallen sharply during the pandemic, due to lower profit-related bonuses, which make up a high proportion of CEO pay.
Looking at Britain’s 350 largest listed companies, the ratio of median CEO pay to median employee pay fell to 44:1 in the 2020/21 financial year from 53:1 in 2019/2020. For FTSE-100 companies, the ratio fell to 67:1 from 73:1.
However, that trend now appears to be going into reverse.
Ratio rose to 63:1 from 34:1
Across 69 companies which reported in the first quarter of this year, the ratio of chief executive pay to median pay rose to 63:1 from 34:1 a year before.
“Pay gaps are set to rebound post-pandemic,” said the think tank, which focuses on economic inequality.
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Source: Business Times