Monday, November 06, 2006

Bosses get richer

Top executives were paid almost 100 times more than the country's average worker last year, a study from the research firm Incomes Data Services reveals today. In 2000, a typical FTSE 100 chief executive was paid 39 times the national average salary but today the figure is 98 times the average salary.

The average package of a FTSE 100 chief executive has soared to £2.9million, a 43 per cent jump on the previous year.
This is mainly their annual salary and bonus, but includes perks such as share options and long-term incentive payments.
Their average salary is £731,000, which is 9.1 per cent higher than the previous year, and their average bonus was £627,000.
In comparison, a full-time worker gets an average of £29,331, which means each executive earns the equivalent of 98 workers' annual salaries.
Total earnings for the UK's top bosses have increased by 102.2% since 2000, while other employees have seen their earnings increase by a comparatively low 28.6%, IDS said

Sir Martin Sorrell, chief executive of WPP, the marketing group, heads the list of most highly paid FTSE 100 heads, with £17.1 million of compensation.
Mick Davis, chief executive of Xstrata, the mining group received £15.3
Bart Becht, head of Reckitt Benckiser , the household products group, got £13.6
Alasdair Locke, head of Abbot Group, the Aberdeen oil drilling company, was the lowest-paid chief executive in the FTSE 350, pulling in a total of £222,000.

Official figures show City workers also received record pay rises of up to 21 per cent.
The typical annual salary for a man with a full-time job in London's financial centre is now more than £100,000.

Other research has revealed the scale of pensions available to senior bosses.
A typical director of a FTSE 100 firm can look forward to a payout of £168,000 a year, more than £3,200 a week, according to the study by the Trades Union Congress. The outlook is very different for their staff who will receive an average of £7,124 a year.


Bill Deakin said...

Nobody ever got rich working for someone else (well almost nobody, I'm not counting the early years at Microsoft!)

If you want true financial independance you simply have to be your own boss... Whether through traditional business, franchising, brokerage or network marketing, it is the only way IMO to stay ahead of the game and beat the pension crises while you're at it!

ajohnstone said...

Bill ,
The real point is that you can never become rich on your own have to become an employer and use the muscle and brain power of others and exploit their labour for your own profit.
And many of the so-called self-employed are no more than sub-contractors and indirectly dependent on the large conglomerate's goodwill and custom as an employee may be . See the article on Food and Farmers below :
I think Marx talked about the small entrepeneur being swallowed up by the inevitable rise of monopolies who come to dominate the market and drive the petite-bourgeousie into the ranks of the working class .
In the UK we witnessed the endowment mortgage failure to repay or provide the equity promised on property . I neither have hope that private pensions schemes can provide for thee old age nor faith that the State pension will not be eaten away by welfare cuts .
Capitalism cannot be reformed to work in the interests of the majority