Greed in the boardroom means gross unfairness for the rest of the workforce
The debate about pay inequality is often conducted in dry statistics, figures and graphs. The Divide, a film released last week, is refreshingly different: it tells the story of how the realities of inequality play out in people’s lives. It follows low-paid workers in the service industry struggling to make ends meet, and people living in gated developments with no sense of community. Leah, who works long shifts six days a week for take-home pay of $150 a week is so busy she hasn’t even had time to watch the film.
Here in the UK, real wages have fallen by more than 8% between 2007 and 2014. Yet CEO pay has been steadily rising: shareholders reacted angrily to news that Bob Dudley of BP was awarded a £14m settlement despite losses and job cuts, rejecting the package in a non-binding vote. The top-paid FTSE 100 CEO, Martin Sorrell at WPP, is paid a staggering £70m a year. Analysis by the independent High Pay Centre shows FTSE 100 CEOs are paid an average of almost £5m a year, 183 times the average UK employee, up from 160 times just six years ago. Thirty years ago, these multiples were a fraction of what they are now.