In the News
Labour Market Rewards - FTSE-100 CEO Pay climbs 23% this year
8th November 2022
Are we truly all in this together? The Guardian reports that FTSE 100 chief executives’ pay soared to £3.9mn — an average rise of 23% this year, according to research from PwC.
According to the Guardian piece. "The soaring pay at the top comes as companies push back against workers’ demands for pay rises to help them cope with high inflation and the cost of living crisis.”
Bonuses and long-term incentive schemes lie at the heart of this jump. Most executives received a salary increase for 2022 in line with their workforce, with 38% awarded an increase below that of their staff.
It's another example, for me, of why conventional labour market theory, and marginal productivity theory, is simply no longer fit for purpose. And we have to ask as a society whether we are happy with this state of affairs.
Pay of FTSE 100 chief executives rose an average of 23% in 2022 https://t.co/ImYFf9ViP9
— Guardian Money (@guardianmoney) November 7, 2022
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Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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