British bosses' incomes have risen twice as fast as inflation

British bosses’ incomes have risen twice as fast as inflation

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In a context of inflation of more than 10% in the UK, these amounts could be “distributed more fairly”, Luke Hildyard, director of the think tank, told AFP on Tuesday. High salary center which specializes in studying the remuneration of British senior executives. The increase in income is mainly boosted by the increase in bonuses after “the reopening of businesses and the return of demand after the pandemic”, emphasizes Andrew Page, specialist in executive compensation at PwC.

The average income of the bosses of the FTSE 100, which includes the 100 largest valuations on the London Stock Exchange, rose from 3.2 million pounds to 3.9 million (4.5 million euros, +22%) for the financial year 2021-2022, noted PwC in a press release on Monday. Executive compensation had fallen during the pandemic following cuts or freezes in salaries and bonuses, voluntarily or under pressure from investors. But it has since reversed sharply, returning to its pre-pandemic level, according to several studies.

PwC notes a decrease in the proportion of these big managers affected by a pay freeze, from 43% in 2021 to 15% in 2022. Next year, the issue of remuneration “should be subject to greater scrutiny from investors, especially in the correlation of rising inflation and wage increases across the workforce,” said Andrew Page.

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“Over the last decade, investors have started to be more stringent about executive pay”, with FTSE 100 companies rarely paying their chief executives beyond a ‘range of £3-4m.’ annually, adds Hildyard of the High Pay Centre. But “that’s still the equivalent of paying (the bosses) more than 100 times the wages of an average British worker,” he insists.

Strikes have been mounting for months in the UK to demand better wages in the face of massive price rises. A strike by rail workers was suspended last week by one of the sector’s main unions after progress in negotiations.

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