A study from the High Pay Centre on pay ratio reports has prompted calls for significant governance reforms in pay and worker representation.
The High Pay Centre has urged boards to explain how they will use the information gathered for pay ratio reports and renewed calls for legislation to introduce workers on boards.
Researchers from the think tank looked at disclosures from 201 companies on pay ratios, which found that median FTSE 100 ratio for chief executive to the lowest paid, or lower quartile, workers in 2019-20 is 109:1. For the FTSE 350 the figure is 71:1.
The study also identified the companies with the biggest pay disparities. Ocado, an outlier, revealed a ratio of 2,605:1 for the CEO to median employee. Though that is extreme, other companies disclosed big number
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Large shareholders have had the right to challenge executive remuneration in the UK since 2013, but research shows that no pay policies in FTSE 100 companies have been defeated by investor votes since the law was introduced.