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
- High Pay Day 2020: Scope for fairer pay and lower inequality remains considerable
Pay for the typical FTSE 100 CEO in 2020 has already surpassed the amount the average UK worker earns in an entire year. We can do much more to achieve a better balance between those at the top and everybody else
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- High Pay Centre briefing: regional economies across the EU
The UK's poorest regions are falling behind the rest of Europe