Industry: Fat cats still get the lion's share

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The Independent Online
The gap between the "haves" and "have nots" in British industry is continuing to widen as directors award themselves pay rises four times the increases they grant to their employees, according to a study published today.

The ratio of the pay of the highest-paid director and the average employee was 12 to 1 in 1994, but three years later it had increased to 16 to 1. The TUC, which asked City research group Datastream International to compile the figures from company accounts, said the statistics show that little had been done to curb "executive greed" despite the strictures of the Greenbury Committee, which investigated boardroom remuneration more than two years ago.

Comparing the same 362 companies in 1994 and 1997, the TUC's report, "Wider Still and Wider", showed that the average pay of the highest- paid director, excluding shares and incentives, had increased from pounds 204,160 in 1994 to pounds 312,910 in 1997, an increase of 53 per cent or around 16 per cent a year. At the same time the average pay of employees rose 13 per cent, or 4 per cent a year, from pounds 17,240 to pounds 19,410.