Top executives at FTSE 100 companies will earn more in the first three working days of 2018 than the typical UK worker will earn all year, according to new analysis.
The day has been dubbed "Fat Cat Thursday," and draws attention to the large pay gap between what CEOs and ordinary workers are paid.
Although executive pay fell between 2015 and 2016, CEOs still took home 120 times that of the average worker.
LONDON — On the first Thursday of 2018, the average FTSE 100 CEO will already have earned more money than the typical UK worker will earn all year.
Top executives will earn more than ordinary workers in only three working days, according to analysis by think tank The High Pay Centre and the Chartered Institute of Personnel and Development (CIPD), prompting January 4, 2018, to be dubbed "Fat Cat Thursday."
FTSE 100 CEOs were paid a median of £3.45 million per year in 2016, a modest fall from £3.97 million in 2015 — but still 120 times the median UK salary of £28,758.
"To ensure this year's fall in CEO remuneration isn't just a blip on the consistently upward trend of recent years, it's crucial that the government keeps high pay and corporate governance reform high on its agenda," said Peter Cheese, CEO of the CIPD.
"We need a significant re-think on how and why we reward CEOs," he said.
In December, a new public register was published that details those companies where more than 20% of shareholders rebelled against resolutions, the most common concern relating to executive pay. Sports Direct, Sky and Morrisons were just some of the well known British companies named.
The move came as part of Prime Minister Theresa May's crackdown on sky-high level of executive pay, one of her campaign promises, which she has described as representing the "unacceptable face of capitalism." New legislation will also require around 900 listed companies to annually publish and justify the pay ration between CEOs and their average worker, which was welcomed by Thursday's report.
The highest paid CEO in the analysis in 2016 was advertising firm WPP's Sir Martin Sorrell, who took home £48.1 million, down from £70 million in 2015. His pay packet dwarfed even the executive in second place, travel company Carnival's Arnold Donald, who took home £22.4 million.
Stefan Stern, director of the High Pay Centre, said pay gaps between top executives and the rest of the workforce were "still grossly excessive and unjustifiable."
In November, 71% of Sports Direct shareholders voted against a proposal to pay founder Mike Ashley's brother John Ashley an £11 million back payment, while 33% of Thomas Cook shareholders voted against plans to award CEO Peter Frankhauser a bonus of up to 225% of his basic salary.
In a 2015 survey of more than 1,000 working adults, the CIPD found 71% agreed that CEO pay levels in the UK were generally too high, and 60% agreed such high pay demotivated employees.
Source : http://www.businessinsider.com/fat-cat-thursday-ftse-100-ceos-2018-1538