This year, for the first time, UK listed companies are required to publish ‘pay ratio’ data in their annual reports. This must show the total earnings of the company’s CEO compared to the individuals at the upper, median and lower quartiles of the pay distribution of their UK employees.
The figures are of considerable value to the debate about economic inequality in the UK. Rather than relying on abstract economy-wide data showing income shares and levels, we can now look specifically at some of the biggest employers in the country, understand the scale of inequality they contain, make intra-sector comparisons, and propose revisions to the balance between high and low earners.
At the High Pay Centre, we have analysed the very first compulsory pay ratio disclosures from 107 FTSE 350 companies’ annual reports that were published between 1 January and 30 April this year.
