marxism-digest V1 #1285

Philip L Ferguson PLF13 at
Wed Sep 1 17:01:51 MDT 1999

A friend of mine recently sent me this about pay for managers in Britain.
I'm not sure where it's from, I assume one of the British dailies or maybe
the Economist, but I thought list members might be interested:

Bosses steal pay march on staff

The pay of top company directors in the UK has risen by more than 10% during
the past year, while employee salaries struggled to rise more than 4%.
Labour Research Magazine, which is sponsored by the trade unions, surveyed the
annual reports of 2,000 companies and found that the pay of top directors rose
much faster than the pay of their staff, inflation or the profitability of
their companies.
On average, the pay of directors went up by 10.7%, the fifth successive year of
double figure increases, taking into account basic salary, bonuses and benefits
in kind.
The researchers found that during the past year
·       332 directors earned more than £500,000
·       79 topped the £1m mark
·       three received more than £5m.
The UK's top earner: Jan Leschly of SmithKline Beecham has netted £92m in pay,
bonuses and share options
The report said that the "chasm between boardroom pay and the UK workforce has
grown even wider".
This compares with recent findings from labour market research group Incomes
Data Services, which found that just 9% of companies offered pay rises of more
than 4%.
The majority of pay deals was in the 2.5%-4% range.
World class pay - and performance?
Organisations like the Institute of Directors say that executive pay can be
defended on the grounds that world class performance must be rewarded with
world class pay.
However, over the past year, UK company profits have actually fallen, while
director pay went up by more than 10%, and the new figures are likely to
accelerate government plans to make it easier for shareholders to limit
boardroom pay.

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