Member Article

Executive pay cheques damaging society say study

Executive pay deals are having a “corrosive” effect on the economy, according to a UK think tank.

The BBC reports that the High Pay Commission believes that wealth disparity has been building for 30 years, and is creating inequalities comparable to the Victorian era.

The study is now calling for executives to follow a 12 point plan to end this tradition, including a requirement to publish a pay ratio between the highest paid executive and the company median.

In the past 30 years, executive pay cheques at some FTSE companies have risen by 4000%.

The chairwoman of the High Pay Commission Deborah Hargreaves believes that by setting executive pay behind closed doors, it creates a “deep malaise at the very top of our society”, especially in a time of “unparalleled austerity”.

This was posted in Bdaily's Members' News section by Ruth Mitchell .