City bosses now earn a phenomenal 120 times more than you

FTSE100 directors have seen a 21% increase in total pay in just a year, while the average employee is struggling to get pay rises at all.

The average earnings for a FTSE100 boss is now £2.4m, partly due to the large increase in share awards, according to research from Incomes Data Services (IDS).

In the year to June 2014, increases in share awards for FTSE100 directors rose by 44%, and bonuses rose by 12%.

Meanwhile, basic pay for full-time employees rose only 2.5% on average.

With inflation currently at 1.5% (but higher during some points of the year), workers will on average have had a 1% increase in their pay in real terms, but many will have seen a pay cut or no change at all.

The report also found average earnings for FTSE100 chief executives were £3.3m. That figure has increased by 278% since 2000.

FTSE100 chief executives now earn 120 times what a full time employee earns, compared with 47 times in 2000, according to IDS.

This will make bitter reading for workers who, on average and adjusted for inflation, are still earning 10% less than before the Great Recession began in 2008.

The news about executive pay comes as a campaign to help increase earnings for normal workers gains momentum.

Thousands of people are expected to flock to London on Saturday for the Britain Needs a Pay Rise march, according to the TUC.

The TUC’s general secretary Frances O’Grady said: “Now we know who is benefiting from the recovery. For as sure as anything it is not the great majority of workers who continue to face cuts in their living standards.

“Every year people ask if this soaraway boardroom greed can continue. It seems it can.”

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Readers' comments (1)

  • Anonymous

    Before getting on your high horse and demanding pay increase. Stop and think about the impact of pay rises - If everyone starts demanding pay rises, then inflation will take off - or as Harold Wilson sensibly said 'One persons pay rise is another persons bread rise'.

    The salaries paid to these FTSE 100 CEO is virtually irrelevant to the cost of products or the overall wage bill. In addition (we) the public own most of these UK FTSE 100 companies via our pensions etc. So if we don't like it we have another route to ensure bosses pay is fair. But if they are making our pensions better then maybe (just maybe) we shouldn't complain?

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