We need a fairer society

Pay StatisticsIt is clear from this graph that the experience of those involved at the top of FTSE100 companies is very different from the lives of many of those who really do create wealth in this country. Yet whenever Government Ministers speak about wealth creators and entrepreneurs one wonders if they really understand the difference. There are many SMEs that are creating new jobs each year yet pay their owners and directors at lower levels than they do for their staff. In many cases this is a reflection of the risks that these entrepreneurs take. Even in companies where the Owner, Directors are financially well rewarded for their hard work and risk taking, the difference in pay between the employer and employee is barely 2 or 3 times, not the 127 times that the High Pay Centre measured within FTSE Companies for their report “Reform Agenda: How to make top pay fairer” At one time the Government promised to increase the level of Government Contracts being procured from SME’s yet those warm words appear to have been replaced with silence in recent months. One wonders if this reflects the extent to which the Tories receive large donations from some FTSE Companies or their directors donating in a personal capacity. It was the coalition Government that introduced regulations requiring companies to compare salary and bonus increases to those of their wider workforce, yet in the year 2013 the average total pay received by a CEO of a FTSE company rose to £4.7M from £4.1M the year before. This was happening at a time when private sector pay was rising for many workers but not at a rate of 14%. It is important that the findings of reports such as the one above are reported on and challenged by our media and politicians, and at the same time the contrast between the fat cats and those who really do create wealth is disclosed.


About ianchisnall

I have a passion to see public policy made accessible everyone who want to improve the wellbeing of their communities. I am interested in issues related to crime and policing as well as in policies on health services and strategic planning.
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