Consistent with any polling we’ve ever carried out.
Key is ensuring it would be implemented alongside other reforms to ensure it supports improving living standards and building a more productive economy with better outcomes for society.
Great to see the @greenparty.org.uk under @zackpolanski.bsky.social have included tackling excessive income equality in their plan to take on the affordability crisis. 10:1 pay ratios is very ambitious, but far better to aim high than accept a broken status quo which few people support.
We welcome @zackpolanski.bsky.social and @greenparty.org.uk plans to put pay ratios centre of their campaigning on the affordability crisis.
HPC have long argued that the UK's pay model is broken, driving extreme inequality and wage stagnation. This is unacceptable in a cost of living crisis.
Ultimately, the policy is crucial to preventing finite corporate wealth from being concentrated in the hands of a select few, at the expense of long-term investment in skills, training and wages that are crucial to productivity, growth and a fairer economy for all.
However, maximum ratios should not be seen as a complete cure to income inequality. HPC also support greater pay transparency, stronger worker ownership models, more accountability for directors and shareholders, enhanced employee voice in decision-making and progressive taxation
While implementation challenges remain, such as how the policy functions in different sectors and the treatment of outsourced workers, these questions are not insurmountable. If addressed effectively, the policy would be clearly in the interests of both workers and businesses.
Limiting the CEO-to-lower-quartile ratio to 10:1 in FTSE 100 firms without Living Wage accreditation would be sufficient to boost 90,715 workers from the National Minimum Wage to the Living Wage. On average, CEOs would receive £353k a year, comfortably in in the top 1% of earners
Limiting wage ratios is not just in the interests of employees, but also businesses. Differentials weaken employee morale and discourage investment in skills and training, undermining productivity and economic growth. It is time the short-termism that has dominated is addressed.
The FTSE 100 CEO to 25th percentile employee pay ratio stands at 106:1. The lowest paid employee ratio is likely well below this, reflecting the scale of the challenge in reducing pay inequality. Clearly, action is needed to ensure a fairer, proportionate model of corporate pay.
We welcome @zackpolanski.bsky.social and @greenparty.org.uk plans to put pay ratios centre of their campaigning on the affordability crisis.
HPC have long argued that the UK's pay model is broken, driving extreme inequality and wage stagnation. This is unacceptable in a cost of living crisis.
Next Thursday we are holding a webinar to launch our new report analysing three years of data from the Fair Reward Framework, focused on trends in remuneration, employee voice, and wider business practices across the FTSE 350.
Sign up below!
highpaycentre.org/fair-reward-...
Next Thursday we are holding a webinar to launch the our new report analysing three years of data from the Fair Reward Framework, focused on trends in remuneration, employee voice, and wider business practices across the FTSE 350.
Sign up below!
highpaycentre.org/fair-reward-...
An emboldened business lobby, left largely unchallenged by both regulators and the government, feels confident in awarding CEOs bumper pay rises, knowing there is little to stop them.
www.ft.com/content/0175...
Fab video from the @highpaycentre.bsky.social on the *shocking* size of bankers bonuses 💰
Years of higher interest rates have let banks rake in record profits while our rent, mortgage, and debt payments soar.
Add your name to #TaxTheBanks 👉 bit.ly/TaxTheBanks
We spoke to Londoners how they felt about CEOs of the big banks getting bumper pay rises, and earning more in a year than most people would earn in several lifetimes.
See how they responded below.
Pay at big banks is soaring while millions struggle through the cost of living crisis.
This level of inequality isn’t sustainable, and if it’s not addressed, it will keep eroding trust in both business and politics.
We are pleased to support @costoflivingaction.bsky.social which launched in parliament yesterday.
Tackling pay inequality is vital to addressing the cost of living crisis through ensuring decent wages and conditions for all across the economy.
Text reads new report: Escaping the state we're in, featuring a man running away from Westminster
Today, we've released a new report by political economist and author Will Hutton.
It explains why Britain is stuck- and what policymakers can do about it.
Read the full report today👇
🔗 fairnessfoundation.com/escaping
The increase is part of a broader pattern among the largest FTSE 100 companies, showing little restraint in executive pay. The City argues higher pay is needed to compete with US firms, and the government isn’t intervening. www.theguardian.com/business/202...
As consumers fear another rise in energy and fuel prices, linked to conflict in the Middle East, few are likely to look favourably on the chief executive of Shell receiving a substantial pay rise. www.theguardian.com/business/202...
More recently we have also looked at what a fat cat tax would look like - a surcharge on corporation tax, which would discourage excessive CEO/worker pay ratios, while increasing revenue to be invested in tackling the sources of inequality. highpaycentre.org/petition-for...
Over the years the High Pay Centre has proposed a range of policies which seek to achieve this from employee profit sharing and workers on boards to strengthening union rights and capping pay ratios. highpaycentre.org/wp-content/u...
In a world where achieving economic growth is challenging, tackling inequality is essential to improving living standards.
This requires a range of different approaches.
Higher taxation on wealth needs to be one of these.
But reducing pay inequality is also essential.
Increasing collective prosperity and tackling economic inequality is not a binary and should not be seen as one.
Many people have growing awareness that greater economic growth does not necessarily mean better living standards for themselves.
Andy Burnham’s “Manchesterism” rightly argues that the loss of public control of essential services worsens the cost of living crisis.
This is the “Privatisation Premium”.
Our new briefing explains this premium & how to fix it. 🧵
www.common-wealth.org/publications...
Group of people on House of Commons terrace smiling holding reports
Discussion around seated breakfast table
Timi and Will holding copies of the report
This morning the Fairness Foundation and the Black Equity Organisation launched our new joint report in Parliament on the UK’s racial wealth gap.
Combining evidence and case studies, it reveals the scale of racial wealth inequality today.
Read more 👇
fairnessfoundation.com/a-tale-of-tw...
UK bank bosses pay is at its highest for years. The bosses of Lloyds, Barclays and NatWest just received a total £5m pay rise - a 28% increase.
Their employees pay rise? Just 5.6%.
Analysis on how this is unsurprising in a broken executive pay model: highpaycentre.org/uk-bank-boss...
If the government wants to regain public trust and demonstrate it prioritises the wider public over big business, it should take action to curb runaway executive pay. Mandating worker representation on boards would be a strong first step.
www.ft.com/content/22a1...
