Britain’s housing crisis: CEOs at house building companies earning mouthwatering sums
Research shows scale of pay inequality in the housebuilding industry
The scale of Britain's housing crisis is well-documented, yet our biggest property development firms and the executives running them continue to prosper despite the country's shortage of badly-needed homes
Our new briefing highlights the multi-million pound CEO pay packages that have become common in the industry, with top executives paid hundreds of times the salary of the average construction worker. The research raises the question of whether or not the executives charged with delivering a public good - such as people's homes - should receive such vast sums of money, particularly given the many criticisms levelled at the big housing developers regarding the extent to which they are exacerbating the housing crisis.
On 5th September a backbench debate took place in the House of Commons led by Siobhain McDonagh MP which highlighted some of the issues raised in our report.
MPs from across the house including the Minister for Housing and Planning Esther McVey expressed concern at the scale of CEO pay packages.
" None of us can agree with the exorbitant pay packages that some people have received." Esther McVey MP, Minister of State
"Anybody...will consider some of the companies that she named to be a roll call of disrepute" Sir George Howarth MP
"I am worried as to what the heck the shareholders are doing. Do they not question this when they have their AGM?" Bob Stuart MP
Since 1 January 2020 the average FTSE 100 CEO has earned:
Income inequality in the UK
Wealth inequality in the UK
- COVID19 and corporate resilience
The pandemic is highlighting the deep flaws in the UK’s corporate governance system. Will this prompt listed companies to rethink their priorities? - A blog by Rachel Kay, a researcher at the High Pay Centre
- Executive Compensation: Covid-19—A “New Normal” Or Back To The “Old Normal” by 2022?
A guest blog from Iain Stark, international HR leader and reward expert, on the future of executive pay post COVID19.
- Re-thinking reward: interim High Pay Centre analysis of new pay ratio reports
Our analysis of the first 'pay ratio' reports finds some limitations to the disclosures, but also identifies the potential to raise pay for low earners through redistribution from those at the top