5mo ago

Pay gap between bosses and employees must be reduced, UK workers say

www.theguardian.com

Summary

A survey by the High Pay Centre found that 55% of respondents support capping CEO pay to maintain a fair balance between workers and bosses.

The thinktank also recommends giving workers the right to vote on company boards and increasing transparency about top pay.

The UK government is under pressure to address income inequality, which has grown by 1.3% in 2022, with the poorest 20% experiencing a 3.4% reduction in disposable income while the richest 20% saw a 3.3% increase.

25 comments

Pay gap between bosses and employees is totally fine, UK bosses say.
- Shareholders: pay gap between bosses and employees must be increased!
  
  Nah, Shareholders would probably rather see that money come their way

If the world does not address the fact that companies no longer work for anything but next quarters shareholders meeting, china will eat everyone's lunch.
The fact china was able to work quietly and then make all the worlds car manufacturers technically obsolete in 5 years shows that long term planning and direction works wonders. Their models works.. just don't care about the harm you cause along the way.
There must be a middle ground that works.. I'd argue for a bigger government involved in directing the economy and countries more.. not less, profit caps and revenue taxation.. but people smarter than me might have better ideas.
- I think there needs to be a heavier tax on short term investment. This would disincentivize quarterly returns over multi year returns, and make investors prioritize longer term planning.
  Right now you only pay taxes on stocks based on what you cash out every year, I think the length of an investment should ease its tax burden. Hold a stock for 1 year, you pay a high percentage when you sell. Hold it for years and that percentage drops every year until you hit a minimum. I think a 5 to 10 year period before it hits the tax minimum would be good for encouraging longer term investment.
  It would also shift the focus away from companies being increasingly profitable over short terms periods. That’s simply not how any business works, and it’s ridiculous that it’s become the norm to expect that. It gives companies a chance to have bad quarters and years, without as much fear that their investment will dry up overnight.
  
  I fear that will just cause the squeeze to focus on dividend payout, stock splits and buybacks.

There's a big difference between wanting something and doing something about it. Even if 90% of Britons wanted to cap CEO pay, if they vote for parties that don't legislate that or don't show up to the polls, it won't happen.
- We have two parties and the one with the highest chance to do this is in power cureently
  
  The UK has more than that. 13 according to wikipedia.

Who are the 45% ?
- People who think they will be there, those who can possibly get there and those who support unfettered capitalism with or without fully understanding the concept.

The trouble is, people like my MD has an accountant, and accountants are really good at showing rich people how to save money. So my MD takes essentially no salary.
But he does take home in excess of £300k a year in dividends. As does his wife, who hasn’t worked for the firm for six years, but is still a director.
Then he gripes about pay rises for the 120 people who work for him.

ITT:
"No shit."
People like the smell of Executive butthole

Damn, 55% of Brits are tankies

Why? If you work harder, have more experience and responsibilities you should earn more. Simple.
- Do you believe that the average CEO works harder or has more experience than the average worker?
  Do you think they work 400 times harder, or have 400 times more experience?
  
  Oh oh oh I know this one!! The answer changes for this! Only I can use the "work harder" argument to suit my needs, once you turn it on me I get to say "HaRd WoRk IsNt ThE sAmE aS VaLuAbLe WoRk!!"
  
  In most cases, yes, they do work a lot harder than the average worker. Running a business is hard work and comes with a lot of stress and sacrifices. How many CEOs do you know personally? I’m sure if you asked a CEO where it’s like to run a company I’m sure you’ll find it harder than you think. Posts like these are mostly driven by the politics of envy and resentment. I can’t believe I’m being down voted for stating the truth.
- Agreed. It **should **be a meritocracy. However, for anyone who has worked a job for more than a few years, it's obvious that it often doesn't work that way.

25 comments