In the News Teaching Activity – is the pay gap between bosses and their workers too big? (Dec 2024)

Chief executives' pay should be capped to ensure fairer pay ratios between bosses and workers, according to a High Pay Centre survey.

The growing disparity between executive and worker pay has sparked debates on its economic consequences. Proponents argue that capping CEO pay and enhancing worker representation on company boards could reduce inequality, boost morale, and foster stronger economic growth. Critics, however, warn that such measures might deter top talent, potentially harming business competitiveness. Amid high-profile disputes over executive bonuses and rising income inequality, the UK faces increasing pressure to address its pay gap. Advocates for reform highlight the need for greater transparency and a more collaborative workplace culture to promote fairness and economic resilience.

Pay gap between bosses and employees must be reduced, UK workers say | Income inequality | The Guardian

1. " In 2022, income inequality, as measured by the Gini coefficient grew by 1.3%”. Explain how the Gini coefficient measures income inequality.

2. Using examples from the article, assess why the public are mostly in favour of reining in excessive executive salaries.

3. Discuss the potential benefits and costs of a policy that aim to reduce the pay gap between bosses and their workers.