Large businesses forced to publish CEO salaries
Business Secretary Greg Clark has announced that all large firms will be required to publish the pay gap between their Chief Executive and an average worker. All firms with over 250 members of staff will need to explain the difference, which is known as the pay ratio.
The average FTSE 100 CEO receives an average remuneration package of £4.5million, according to analysis published in August 2017. This means that it would take the average UK full-time worker on a salary of £28,000 (median full-time earnings) 160 years to earn what an average FTSE 100 CEO is paid in just one year.
The timescales are challenging – from January 2019 companies must consider how they are meeting the new requirements and be ready to report on them from January 2020.