Page 10 - Gi February 2019 - flipbook

NEWS | MANAGEMENT

Male CEOs paid nearly double

their female counterparts

THE FTSE 100’S six female
chief executives earn only
54 per cent of the salary of
their 94 male equivalents,
exposing a substantial
pay gap reports Personnel
Today. The women earned
an average of £3.2 million
each last year, compared
with £5.9 million for the
men, according to figures
compiled by the Equality
Trust. It also published
statistics showing that
FTSE 100 CEOs now earn a
median wage of £3.9 million
per year. This means that
it would take an average
worker (on a median pay of
£29,574) 133 years to earn
a chief executive’s average
annual pay.
The six female CEOs are
Carolyn McCall (ITV), Emma
Walmsley (GSK), Alison Only 7.6 per cent of the
Brittain (Whitbread), Olivia FTSE 100's most senior
Garfield (Severn Trent), roles are held by women
Alison Cooper (Imperial
Tobacco) and Véronique that they are paid less on flourish, we must tackle and non-financial measures
Laury (Kingfisher). average than the 94 men inequality urgently.” of performance. They
Dr Wanda Wyporska, may not be significant.” This year’s Green Park state this should include
Executive Director of The Other factors, such as size report into diversity at measures such as employee
Equality Trust, said: “Even of company and share board level in FTSE 100 well-being and investment
women who have reached performance play a key role companies showed that in workforce training and
the highest echelons face a in determining senior pay, only 7.6 per cent of the development – all of
gender pay gap and are paid he added. most senior roles (Chair, which are crucial for good
less than men. The cosy club Wyporska described CEO and Chief Financial corporate governance.
mentality of top companies the increase in the salary Officer) were held by Hildyard said: “Excessive
continues, dominated largely of CEOs relative to women. There were 10 executive pay represents
by white males.” ordinary working people CFOs, as opposed to 12 in a massive corporate
However, with such a as a “national scandal” and 2017. The number of female governance failure and is a
small number of women, added that “this rampant CEOs was unchanged. barrier to a fairer economy.
it would be hard to come inequality is damaging The report revealed Corporate boards are too
to a conclusion about the UK society. A society that there are five black and willing to spend millions on
reasons for the pay gap. values its teachers, care minority ethnic CEOs and top executives without any
Luke Hildyard, Director workers and nurses at less three CFOs of FTSE 100 real justification, while the
of the High Pay Centre, than one per cent of a FTSE companies, both increasing wider workforce is treated
acknowledged that it may CEO is beyond broken. by one from last year. as a cost to be minimised.”
be more to do with the Countries with high levels The CIPD and High Pay The report exposes the
nature of the companies of inequality, such as the Centre have issued a report myth of “super talent” as
they lead. UK, have higher levels calling for remuneration a factor that continues to
He said: “The pay gap of mental and physical committees to ensure drive excessive pay and
provides limited insight. ill health, obesity, drug that CEO pay is better quotes one remuneration
What’s more revealing and alcohol addiction and aligned to rewards across committee chair as
is that there are only six lower levels of trust and the wider workforce and commenting: “It’s nuts…
CEOs – women face a educational attainment. To that their contribution is and nuts has become the
lot of obstacles. The fact create a society where all measured on both financial benchmark.” ■

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News.indd 5 17/01/2019 12:34