Prospect Magazine Cover Story: HPC pay ratio research

By 19.10.22MediaNovember 3rd, 2022No Comments

HPC research has been used in Prospect Magazine to launch a discussion surrounding FTSE 350 pay ratios.

The HPC pay ratio database (sponsored by abrdn Financial Fairness Trust) has been showcased in the latest Prospect Magazine publication, used to illustrate the extreme income inequality between the highest and lowest paid workers in the same organisations. A double-page spread of the database outlines the largest pay gaps between CEOs and the lower paid workers, whilst also highlighting how the pay ratios are most pronounced in specific industries. 

The accompanying feature length article from HPC’s founder Deborah Hargreaves discusses how inequality has grown significantly since the 1980s. CEOs and other top executives have enjoyed a sharp rise in incomes, whilst workers have endured stagnating wages and the erosion of employment conditions and living standards.

Despite the recent introduction of regulation that makes pay ratio reporting mandatory for large listed companies, CEO pay has spiralled. FTSE 100 chief executives enjoyed a pay increase of 39% in the last year alone, up from £2.5m in 2020 to £3.4m in 2021.

Deborah presents an array of HPC supported solutions, including calls for more progressive taxation, a regulatory cap on excessive pay ratios, as well as a bonus-sharing scheme which would allow the whole workforce to share in the success of the company. 

To read Deborah’s article, in order best understand the issues and proposed solutions, follow the link