HPC Pay Ratio Research • High Pay Center
The HPC Earnings Ratios Database (sponsored by abrdn Financial Fairness Trust) featured in Prospect Magazine’s latest publication, used to illustrate the extreme income inequality between the highest and lowest paid workers in the same organizations. A two-page spread from the database outlines the widest pay gaps between CEOs and the lowest-paid workers, while highlighting how pay ratios are most pronounced in specific industries.
HP’s accompanying feature articleC Founder Deborah Hargreaves explains how inequality has risen dramatically since the 1980s. CEOs and other senior executives have enjoyed a surge in income, while workers have suffered stagnant wages and the erosion of employment conditions and standard of living.
Despite the recent introduction of regulations that make reporting of pay ratios mandatory for large listed companies, CEO pay spiraled. FTSE 100 chief executives have received a 39% pay rise in the last year alone, from £2.5million in 2020 to £3.4million in 2021.
Deborah outlines a range of solutions supported by HPC, including calls for more progressive taxation, a regulatory cap on excessive pay ratios, as well as a bonus-sharing system that would allow the entire workforce- to share in the company’s success.
To read Deborah’s article, in order to better understand the issues and the proposed solutions, follow the link