Pay Gaps - Where Are We?
Quote of the month
“If the plan doesn’t work, change the plan, but never the goal!”
PAY GAPS – WHERE ARE WE?
Every wondered how much your boss earns?
Earlier this year it was reported by the Chartered Institute of Personnel and Development (“CIPD”) that the average pay of a FTSE 100 chief executive was an eye-watering £1020 an hour!
In a report by The Business, Energy and Industrial Strategy Committee (BEIS) it found that
· the gap between executive and worker pay had the effect of embarrassing companies and damaging reputations;
· employees to sit on remuneration committees to avoid decisions like not capping bonuses
· the climate for excessive executive pay needs to be made sufficiently hostile and damaging to reputations that no-one in the decision-making chain would be prepared to countenance it.
Of course, the other “gap in pay” – the gender pay gap saw the deadline for public-sector organisations and private companies and charities submit their gender pay reports this month.
Analysis of the 2018 data by Personnel Today found that, overall gaps are narrowing, but I don’t think we are quite there yet!
Recently the BBC came under criticism because only 2 out of its 20 top paid stars were women despite efforts to tackle the vast differences in pay between men and women revealed last year.
Another areas of reported disparity in pay includes:
· male and female graduates in the UK – the gap had widened over three consecutive years with
men earning more than women at all stages in the 10 years after graduation
· pupils on free school meals as opposed to those not earned £3000 a year less 5 years after graduation
· black Caribbean, Pakistani and Bangladeshi graduates all earned less than white, Chinese or Indian graduates