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Pay gulf widens

This article is over 21 years, 5 months old
Issue 1707

Pay gulf widens

WORKERS’ PAY is running below inflation while company executives’ pay soars. Independent pay analyst IRS says that pay settlements in Britain averaged 3 percent in the three months to June. Inflation is running at 3.3 percent. Meanwhile a report on top pay by the Monk Partnership firm shows that a chief executive in a FTSE 100 stock exchange listed company now earns on average 643,000.

  • CHRIS GENT, chief executive of Vodafone, is due to appear at the company’s annual general meeting this week to try and justify his astronomical salary.

Gent has just bagged a 10 million bonus on top of his 1.36 million salary and 2 million in shares. He says the money is somehow performance related. Critics say the money is really his slice for the takeover of the German Mannesmann company earlier this year.

A corporate analyst says: “These executives are trying to pull the wool over people’s eyes. So they’re creating increasingly complex schemes to get themselves paid more and more.”

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