To think bosses are paid too much

(81 Posts)

Or people are paid too little relative to one another

The pay gap report has found CEO's of FTSE 100 companies are paid 148 times more than their average workers. 175 times more than the average salary.

This has changed. In 1980 it was between 6 and 44 times. Even In 1998 it was 47 times. Our economy and the companies were more successful then so pay does not reflect success or trickle down to the rest of the economy.

John Lewis cap it at 1:75

AIBU to think this needs some sort of legislation? It needs fixing. Or at least revising.

Article here:

www.theguardian.com/business/2014/aug/18/pay-gap-grows-ftse-bosses

scottishmummy Mon 18-Aug-14 20:36:16

I disagree.in fact many bosses deserve their salary.and some don't
And in some sectors eg public sector managers are underpaid

SteeleyeSpanx Mon 18-Aug-14 20:38:06

Pay peanuts get monkeys.

...and most of our pensions are invested in the shares of FTSE 100 companies - be careful what you wish for...

Vivacia Mon 18-Aug-14 20:39:05

I agree, I haven't read the report but can't see a problem with a much lower multiplier. Say, the top salary can be no more than 10 times greater than the lowest.

LadyLuck10 Mon 18-Aug-14 20:39:32

Yabu, I feel it's justified.The amount of stress and responsibility my DH takes on is not something the average worker has to deal with.

scottishmummy Mon 18-Aug-14 20:41:05

And if you reckon it's money for old rope,you do it.you carry the responsibility

expatinscotland Mon 18-Aug-14 20:41:05

1:75 seems far more reasonable.

scottishmummy Mon 18-Aug-14 20:44:18

No legislation or revision is required.
Public sector wages is set by govt and limited by public opinion
Private companies are accountable to shareholders can pay want they wish

stubbornstains Mon 18-Aug-14 20:44:58

Pay peanuts get monkeys.

I totally agree. And this is exactly why top executives of big companies should be trying to raise the pay of their lowliest members of staff- at the expense of their own salaries, if needs be grin.

OddBoots Mon 18-Aug-14 20:46:09

You're right, anyone earning over 100 times what an employee is is being paid too much and in my opinion is exploiting the work of at least some of their employees and the tax credit system.

Absolutely people at the top deserve much higher pay, they have the responsibilities, but the rate of pay relative to other workers is far too high.

Vivacia Mon 18-Aug-14 20:51:29

People only need so much money. There's no need for someone to be paid 200 times more than a living salary.

BackforGood Mon 18-Aug-14 20:51:39

I'm with Oddboots and Vivacia.

Surely a limit of 10x what the lowest paid (FT) employee is paid, would be plenty. If it's not, then perhaps some of these companies need to look at what they are paying their lowest paid members of staff.

scottishmummy Mon 18-Aug-14 20:53:06

By all means look at low wages paid,but it doesn't necessarily mean restrict high earners

Vivacia Mon 18-Aug-14 21:09:12

Well it does, because there's only so much money.

scottishmummy Mon 18-Aug-14 21:15:24

Rubbish.private companies aren't curtailed they pay what they feel us appropriate remuneration

AddToBasket Mon 18-Aug-14 21:16:05

Bosses are totally deluded about their worth. The few very well paid people I know utterly believe they are worth every penny of their salary (obviously). But a combination of luck and work and industry choice and upbringing are generally all round factors. There are only so many hours in the day and only so many IQ points. 'I've worked very hard to get here' - everyone else is working quite hard too, duckie.

Executive stress is real - but frankly nothing on the stress of not being able to feed your family, take them on holiday, meet the nursery bills etc.

scottishmummy Mon 18-Aug-14 21:17:53

Clearly you've never had a good boss,or been a boss?
I'know bosses on 6 figure salary,and yes some of them are worth it.every penny

Yes I think if a company has employees who need tax credits to top up their wages, their Directors should not be earning the massive amounts/bonuses they do.

The CEO/Owner of the company I work for must earn megabucks, his family is in the Forbes 500 list. However, he/they is/are responsible for the livelihoods of 40,000 people. I wouldn't want that on my shoulders for only 100x the lowest paid earner.

Yabu, I'm a boss (self employed, NGO) and am underpaid for the stress I deal with.

I'm hiring staff now and someone wanted €3,800 per month.... That's MUCH more than what I earn...

scottishmummy Mon 18-Aug-14 21:21:13

But someone in Low wage doesn't mean big boss should be paid less
It means the lower paid employee should be paid more

BackforGood Mon 18-Aug-14 21:21:42

I've had excellent bosses. Bosses that really care. Bosses that take huge responsibility. However, as I work in the public sector and not in some kind of financial company in the City of London, I've never worked for a boss that earns more than £50K. Yes, they are worth every penny of that.

Assuming that the lowest paid (FT) worker is going to be on £15 000, then I can't see ANY justification for anyone being paid more than £150 000.

scottishmummy Mon 18-Aug-14 21:24:02

The justification for high salary is talent,leadership,added value to organisation
I don't grudge a talented manager their salary

Thomyorke Mon 18-Aug-14 21:25:47

You have to look at the whole structure of the company, the pay increase has to be worth the taking of more responsibility. I have turned down promotions before now as the pay increase has just not been worth the crap that the new position brought. A cut at the top would mean cuts at all levels to compensate.

SteeleyeSpanx Mon 18-Aug-14 21:26:27

Those advocating lower paid workers being paid more need to do a bit of research into wage push inflation.

A bigger number on a wage slip rarely increases an individuals purchasing power and only serves to damage the whole economy.

Far too simplistic an answer.

ItsAllGoingToBeFine Mon 18-Aug-14 21:26:54

I agree there should be some sort of limit. I don't necessarily believe that CEOs should be paid less, maybe their employees should be paid more?

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