Yesterday was “Fat Cat Thursday”.
In the first week of every January, an organisation called the High Pay Centre puts out the same jolly nugget of news: on the first Thursday of 2018, the average FTSE100 CEO will have already been paid what it will take the typical UK worker all year to earn. It then calls for pay ratios to keep CEO pay in check.
The issue is that leaders of public firms are paid what those firms think they are worth. If the High Pay Centre has a better way of determining value, I’m sure business would be keen to hear it. But failing that, it just looks green with envy. And pay ratios don’t work: they simply serve to drive out and deter the best people, which makes life worse for more junior employees and shareholders, who lose expertise and value.