The High Pay Centre, a think-tank that examines executive pay has said that top executives will have made over £28,000 by midday. This is the first time that executive pay has reached this figure. As such the day had been dubbed, “Fat Cat Wednesday”. This is more than most people earn in a year.
In 2015 the median pay for an executive was £4 million a year. This equates to a £1000 per hour. The national living wage is £7.20 per hour. The report is based on that top bosses work 12 hours a day, most weekends and have fewer than ten days holiday per year.
The think-tank has said that excessive executive pay is having negative repercussions in public and not for profit sections. Stefan Stern of the think-tank said, “Our new year calculation is not designed to make the return to work harder than it already is. But Fat Cat Wednesday is an important reminder of the continuing problem of the unfair pay gap in the UK.
“We hope the Government will recognise that further reform to pay practices are needed if this gap is to be closed.”
The report has been condemned as an outrage in some quarters. Frances O’Grady General Secretary of the Trade Union Congress (TUC), said, “Working people deserve a fair share of the wealth they help create. But while the pay of top executives has been rocketing up, the average weekly wage is still worth less than it was nine years ago. The Prime Minister must stick to her promise to tackle excessive pay at the top.”
While shadow business secretary, Clive Lewis, said, “It is an outrage that, before Christmas trees have even been taken down, chief executives have already earned more in 2017 than most people will earn all year.
“But despite promising action, the Tories have watered down their promise to give shareholders binding votes on executive pay. Under this Government, these grossly unfair pay patterns look set to continue.”
Prime Minister Theresa May has hinted at tackling pay disparity between rich and poor. So far, little has been done.