Photo: Flickr user: essygie
The salaries of FTSE 100 executives are rising at a rate faster than inflation, according to research from Deloitte. Meanwhile, “wages for workers are lagging inflation, which reached 4.4% in July, as measured by the consumer prices index,” reports the Guardian.The increases for these UK execs in 2011 were between 2.5% and 7.5%, though most trended on the higher end. Furthermore, “bonus payouts rose from 71% of maximum in 2010 to 87% in 2011 for the 100 largest firms. For the FTSE 250, bonuses leapt from 54% of maximum to 86%.”
It’s normal for executives to get paid more following an economic downturn, but Deloitte says these numbers are still shocking.
“What has surprised us is the number of salary increases above 5%, which is significantly above inflation and the increase in average employee earnings,” Stephen Cahill, a partner at Deloitte, told the Guardian.
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