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27/02/2017
Theresa May yesterday called for firms to publish pay multiple data citing the irrational unhealthy and growing pay gap between staff and the boardroom: www.e-reward.co.uk/news/new-prime-minister-sets-out-case-for-executive-pay-reforms
E-reward Summit Database figures show that the median ratio of CEO total earnings to average staff pay in 71 FTSE 100 firms stands at 106:1. The equivalent figure in the mid-250 is 41:1 based on 170 remuneration reports published in the last 12 months. By sector, the lowest ratios are found in property companies while they are highest in transport and leisure organisations.
Pay multiple analysis can suffer from certain weaknesses so it will be interesting to observe what methodology the Government decides on. Caveats associated with pay multiples and more detailed E-reward results will appear in a forthcoming E-reward newsletter.