By the end of the first three working days of the year, the U.K.’s top bosses will each have earned on average as much as a typical worker will take home in all of 2018, according to a report.
While the difference in compensation appears stark, it narrowed slightly compared with the previous year, the High Pay Centre and the Chartered Institute of Personnel and Development said on Thursday. The so-called “Fat Cat” study by the groups comes amid growing investor and political unease in the U.K. about high CEO pay.
Most people really don't comprehend how much wealth the top CEOs have. Their salary is only a small part of the picture. An extreme example: Bill Gates made $500 a second in 1999 because of the explosive stock market.
The latest calculations were based on an earlier finding by the groups that earnings for CEOs in the U.K.’s benchmark FTSE 100 dropped by a fifth in 2016 to 4.5 million pounds ($5.4 million) annually and another showing a CEO-to-worker pay ratio of 120 to 1.
The average number of employees was 44,000 in the FTSE 100 firms at the turn of the century. I doubt that number is lower today. Let's say that a benevolent CEO in the UK decided to donate his entire yearly salary of $5.4 million to his employees. As a result, the average worker would get a grand total of ... $122. Assuming that employees take one month off, then that amounts to a temporary one-year raise of $0.06 per hour.
This is what the media cries about and people lap it up.