Top City bosses will have been paid more by end of 'Fat Cat Tuesday' than UK's average yearly wage

Sky high: City executives enjoy huge pay packages (file image)
Corbis
Sebastian Mann5 January 2016

Executives at top UK companies will have been paid more this year than the country’s average annual salary by the end of today, according to a think tank.

The pay of high-flying company bosses will surpass the average UK salary of £27,645 by late on Tuesday afternoon, the High Pay Centre said.

FTSE 100 chief executives were paid an average £4.96 million a year in 2014, and the report found that even if they are assumed to work long hours with few holidays, this is equivalent to an hourly wage of more than £1,200.

The think tank said the figures will raise doubts about the effectiveness of government efforts to curb top pay by giving shareholders the power to veto excessive packages.

It called for further measures to be taken, such as representation for workers on company remuneration committees that set executive pay, and publication of the pay gap between the highest and median earner within a firm.

High Pay Centre director Stefan Stern said: "Fat Cat Tuesday again highlights the continuing problem of the unfair pay gap in the UK.

"We are not all in this together, it seems. Over-payment at the top is fuelling distrust of business, at a time when business needs to demonstrate that it is part of the solution to harsh times and squeezed incomes, and is promoting a recovery in which all employees can benefit."

Seema Malhotra, shadow chief secretary to the Treasury, said the report was “shocking”

TUC General Secretary Frances O'Grady said: "Every worker deserves a fair share of the wealth they help create. But the average weekly wage is still worth £40 a week less than before the financial crisis.”

Additional reporting by PA

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