Director V Employee Earnings

Director V Employee Earnings.

A report from Incomes Data Services (IDS) show that directors of the UK’s top 100 companies on average earn 120 times the amount earned by their employees. In 2000, directors only earned 47 times more than their employees average pay.

The report showed that the average annual salary was £27,000 while a director earned £2.43m. There has been a 44% rise in share rewards given to directors as long-term incentives and this is thought to be a main contributor for the difference.

Basic salaries for director were £822,300 without any bonuses and were still 3 times larger than employee average salaries. Bonuses were also up 12%.

The report found that growth in earnings for chief executives of the top 100 companies between 2000 and 2014 rose 278% while earnings for full time employees rose only 48%, widening the gap further.