Union leaders criticise fat cats over pay
Unions have vented their anger at directors today after a report found that the average annual bonus for a director in a FTSE 100 company has soared by 187% in the last decade.
The findings were in a report by the High Pay Commission and discovered that top executives received a bonus worth 90% last year compared with 48% of salary in 2002, despite the same level of performance within the company and massive share price falls in recent years.
Furthermore, the report found that average total earnings of directors of banks which were bailed out by the taxpayer were just under £4 million in 2010 compared with £1.7 million a decade ago.
Deborah Hargreaves, chairman of the High Pay Commission, said: “The evidence exposes the myth that big bonuses and high salaries result in better company performances.
“There has been massive growth in what has been termed as performance-related pay yet no such corresponding leap forward in company performance.”
A recent report shows wage inflation stood at 2.2% for the final quarter of 2010 and taking into account the rising cost of living – the retail price index stood at 4.8% – this means the majority of British workers actually saw a substantial decline in their real incomes.
According to Sky News, Unions have accused top bosses of hypocrisy and RMT leader, Bob Crow, said they demonstrate that “it’s one rule in the boardroom and another on the shop floor.”