Fat Cat Tuesday


By the end of the first Tuesday of 2016, Britain’s top bosses had made more money in 2016 than the average UK worker earns in an entire year, according to the High Pay Centre’s calculations.


Its calculations show that earnings for company executives returning to work in the New Year will pass the UK average salary of £27,645 by late afternoon on “Fat Cat Tuesday”.


FTSE 100 chief executives (CEOs) are paid an average £4.96 million a year. The High Pay Centre said that even if CEOs are assumed to work long hours (12 hours a day) with very few holidays, this is equivalent to hourly pay of more than £1,200.


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


The centre has argued that further measures are necessary, such as representation for ordinary workers on the company remuneration committees that set executive pay, and publication of the pay gap between the highest and median earner within a company.


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


“Overpayment 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.”


http://highpaycentre.org/blog/fat-cat-tuesday-2016