Bosses earn 86 times a typical salary

News Article - 18 October 2006
Category:

Chief executives of companies now receive an average salary of 86 times what a typical employee earns, according to new findings.

Research organisation Incomes Data Services (IDS) found that boss' earnings rose by 43 per cent in one year, with the chief executives of the UK's biggest companies being paid £2.9 million between 2005 and 2006, Accountancy Age reports.

Last year, the previous figure stood at £2 million. The large sums are likely to re-ignite the debate over whether bosses are paid too much, the website states.

The top dogs were listed as Sir Martin Sorrell, head of advertising business WPP, who has earned a total of £17.1 million and Michael Davis of mining group Xstrata, with earnings of £15.3 million.

Next in line was Bart Becht of pharmaceutical group Reckitt Benckiser, who received a total payout of £13.6 million.

These findings follow a recent survey by the Guardian which discovered that between 2004 and 2005, directors' pay rose by 16.1 per cent – eight times the rate of inflation during the year.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »