Thursday 16 July 2020
Rachel Kay, Researcher, High Pay Centre
Martin Buttle, Head of Good Work, Share Action
Janet Williamson, Senior Policy Officer for Corporate Governance, Trades Union Congress
From this year, major UK companies are required to disclose the ‘pay ratios’ between their CEO and their upper quartile, median and lower quartile earners in their annual reports.
High Pay Centre analysis of the first disclosures found that rethinking pay within top companies could be used as a way to give a post pandemic pay rise to the lowest paid workers including millions of key workers, and highlights the scale of pay gaps between top executives and their own colleagues.
Our research shows that reducing pay of top quartile employees at the companies our sample by 3% could fund a median pay rise of £2,000 for the lowest earning quartile of employees in the same companies. So far, the median FTSE 100 CEO to lower quartile employee pay ratio stands at 109:1
This event will discuss the findings of the research and examine the implications for policymakers, companies, investors and workers.
Will the pay ratio disclosures increase awareness about the pay inequalities within companies?
How can those advocating for fairer pay policies use the disclosures?
And what key data remains absent from the new reporting requirements?