Companies are pouring a packet into directors’ retirement funds. This at a time when the government paved the way for firms to slash the pension payouts of 11 million workers.
Research by shareholder group Manifest found that every year the average FTSE 100 chief executive gets the equivalent of 30 percent of their salary put into a fund for their pension payments.
But firms put an average 6 percent of a shopfloor worker’s salary into their pension. On retirement that produces a paltry £1,300 a year, on average.
George Weston, boss of Primark owner Associated British Foods, may well pocket £550,000 a year when he retires. He had £711,000 put into his pension pot in 2015.
Associated British Foods called his pension “a mathematical outcome of longevity of service, age and salary”.
BP’s Bob Dudley had £4.4 million pumped into his pension that year—more than three times his salary.
Business information firm RELX put £766,000 into chief executive Erik Engstrom’s pension in 2015.
Alison Cooper, who runs tobacco giant Imperial Brands, got a £590,000 boost. Taxpayer-saved bank Lloyds put £568,000 into Antonio Horta-Osorio’s retirement pot last year.
Last week the Tories proposed that troubled firms with defined benefit schemes could “cut or renegotiate” their pensioners’ benefits, potentially affecting 11 million people.