Relative pay differences between executive and employee pay

[Paul Thompson]

Jonathan Chapman, Cranfield School of Management, has posted the following on our LinkedIn group:

Does anyone have any data or know of any reports discussing the relative pay differences between executive and employee pay?

I am interested in learning more about the increase in executive pay relative to the average employee. My guess is that the ratio might have been 10:1 twenty years ago, and is probably 50:1 (or more) now. Do you know of any repoprts or public data that I could look at?

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&gid=2340985&discussionID=22445860&goback=.anh_2340985

[Paul Thompson]

Hi Jonathan,

Here are a couple of mentions in recent reports on e-reward.co.uk:

"The pay of people at the top is out of control. Since 1990 the remuneration of the chief executives of FTSE 100 companies has increased from 17 times to 75 times that of the average employee."

* "Rewarding chief executives and directors: A step too far?", Michael Armstrong, Soapbox:
http://www.e-reward.co.uk/blog.asp?bid=42

"Since 1990, FTSE 100 chief executives’ pay has increased from 17 to 75 times that of the average employee"
* "Fairness: the ultimate reward goal", Duncan Brown, Soapbox:
http://www.e-reward.co.uk/blog.asp?bid=28

Also Compass said:
"Over the last ten years the ratio of CEO to employee pay has risen from 47 times to 128.13."

* "Never Again! Why Britain needs a High Pay Commission", Compass 2010: http://www.compassonline.org.uk/publications/

Compass cite Robert Peston's BBC blog:
http://www.bbc.co.uk/blogs/thereporters/robertpeston/2009/06/bosses_pay_and_wpp.html

The other likely source is IDS Executive Compensation Review: http://www.incomesdata.co.uk/