Two-thirds of the population think top pay is generally too high, over half think it is a big problem today, and nearly three quarters say executive pay can make them very discontent. Most people think a CEO should earn no more than 20x average earnings compared with typical pay ratios in the FTSE-100 of over 150x. 87% of the public believes something must be done.
Tom Gosling gives his views in the video below, and in the following two reports we highlight how you can respond to public concern about executive pay, and we review the 2016 FTSE-100 AGM season.
In this report we’ll discuss the current state of public attitudes to executive pay and inequality. We’ll also discuss the pitfalls of the various regulatory interventions being discussed.
Our research demonstrates that policy will need to focus on pay and opportunity for ordinary workers as much as on pay at the top if we’re to achieve an enduring settlement on this issue.
Below we analyse the details of the latest AGM season which revealed relative stability, reflective of the limited changes in executive remuneration levels this year compared to 2015.
But, with a minority of examples of significant shareholder dissent, there are still lessons to be learned and own goals to be avoided for the future. All of which will be essential on the long hard road to rebuilding trust in executive pay.