Public unaware of just how much those at the very top are paid

Zoe Gannon is head of research and clerk to the High Pay Commission

Today is the official launch of an independent inquiry into high pay. The aptly named High Pay Commission has been established by Compass and is supported by the Joseph Rowntree Charitable Trust. To mark the launch the commission conducted private polling with YouGov which had some remarkable results.

Greedy-fat-cat At the most basic they show that the public think the boss of a FTSE 100 company should be paid significantly less than they are – just 1 per cent thought that the CEO should be paid more than £4million (the current average total pay of a CEO in a FTSE 100 company is £4.9 million according to Income Data Services).

Perhaps more interestingly, the poll also revealed hardly anyone realises how much the average CEO of a leading company is paid – only 9 per cent of those polled correctly estimated it.

When it came to guessing how much these top bosses earned, 63 per cent of people either didn’t know or thought that they were paid less than £1million – in reality they are paid nearly five times that amount – and 4 per cent thought the boss of a FTSE 100 company was paid less that £50,000.

Polling is an inaccurate science but at the very least these results show a serious disconnect between the pay at the very top and the public at large. There is a growing public interest in top pay in the private sector and while the government has set up an inquiry into high pay in the public sector, under Will Hutton, this will only ever show half the story.

No one is saying that being a CEO or banker is an easy job but the fact that over the last ten years CEO pay for FTSE 100 companies has increased by 160 per cent and yet the value of these companies has declined by 19 per cent. There is much theorising over high pay but very few answers to the big question – are they worth it?

Today Barclays bank announces its bonus pool which estimates suggest will include an extra £1.5 billion to pay its 25,000 staff on top of the £3bn pay and bonus pot that had been amassed half way through the year. A trading statement by Barclays due today is expected to show a downturn in investment banking profits in the third quarter, matching the recent results from many of its rivals.

Despite the downturn this will see huge bonuses rewarded to the very people who took the big risks with our economy. Over the coming months there will be more announcements of banks’ bonus pools – with barely a day going by without a news story on high pay – so it is timely that this independent inquiry is taking place now.

It is chaired by Deborah Hargreaves, former business editor or the Guardian and Financial Times. She will be joined by a panel of commissioners from business, trade unions and academia. These include Lord Richard Newby, Liberal Democrat peer; Brian Bailey, director of pensions for the West Midlands Pension Fund; Robert Talbut, CIO of Royal London Asset Management; Frances O’Grady, deputy general secretary of the TUC; and Professor Michael Taylor, former Director of Christian Aid.

The commission will run for a year and is tasked with exploring the drivers behind the increase in pay and looking at reforms which could mitigate or reduce this trend.

If you want to find out more or get involved the commission has issued a call for evidence; to submit evidence or have your say log on to highpaycommission.co.uk/submit-evidence

http://twitter.com/superfurryandy/status/1998941222608896 Andy Bean

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/thefridayrant/status/1999076207890433 Maxi

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/sistervelo/status/1999186203512832 sistervelo

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/johnbrissenden/status/1999197012230144 John Brissenden

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/jennybunker/status/1999406941343744 Jenny Bunker

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/bethwatbrad/status/2000024753930240 Bethany W-Bradley

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/othertpa/status/2000043577970688 Other TaxPayers Alli

Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon (via @leftfootfwd)
http://twitter.com/ladyroisin/status/2000152336273408 LadyRoisin

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/compassoffice/status/2000280245764097 Compass

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/richsimcox/status/2000452308705280 Richard Simcox

RT @OtherTPA: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon (via @ …
http://twitter.com/mr_pukeko/status/2000879947354112 Matt Jeffs

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/chr1sr0berts/status/2001307023974400 Chris Roberts

Over the last 10 yrs CEO pay for FTSE100 companies increased by 160% & yet value of these companies has declined by 19% http://bit.ly/a0iy95
http://twitter.com/racheloldridge/status/2001510598705152 Rachel Oldridge

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/thatgeoffchap/status/2001510305107969 Geoff White

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/sarahluv81/status/2002166168428545 sarah

RT @OtherTPA: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon (via @ …
http://twitter.com/katiecurtis/status/2004012668817408 KatieCurtis

RT @OtherTPA: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon (via @ …
http://twitter.com/highpaycom/status/2004608624893952 High Pay Commission

RT @leftfootfwd: Public unaware of just how much those at the very top are paid http://bit.ly/cpNoWb
http://twitter.com/samtarry/status/2005322717732864 Samuel Tarry

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
Anon E Mouse

Zoe Gannon – Why don’t we compare pay in the public and private sectors. That would surely be more telling. We have NO choice on public service…

I bet when the BBC was conceived no one believed the chairman would earn the amount he does and the the annual bill just in wages amounts to £768,752,148.

Did you know there are 180 odd civil servants that earn as much as the Prime Minister?

We have no choice on the pay scales of the bosses of the FTSE 100 companies and nor should we – this isn’t North Korea. They give people jobs and pay taxes to fund the public sector.

We should certainly be tackling the Public Service gravy train and the EU as well…

(Nice website though Zoe)
http://twitter.com/mattlodder/status/2007575100915712 Dr. Matt Lodder

"Over the last decade CEO pay for FTSE100 companies has increased 160%; the value of these companies has declined 19%" http://bit.ly/9zRbDl
http://twitter.com/ldtuc/status/2008942834094080 L DTUC

RT @OtherTPA: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon (via @ …
http://twitter.com/nyloncube/status/2009479281385472 Nylon Cube

RT @SamTarry: RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's …
http://declineofthelogos.wordpress.com Adam Bell

There’s an interesting debate to be had here around whether the market in chief executives is working properly – the constant upward pressure on wages appears to indicate that there are actually very few individuals capable of performing these roles. Whether this is actually the case or not is unclear without further studies of hiring practices for these top roles. It’s shame that this debate will be lost inamongst the ‘filthy rich’ clamour this article will undoubtedly generate.
http://twitter.com/benfolley/status/2014526350303233 Ben Folley

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://twitter.com/re_asylum/status/2014825408368640 Wonko Le Sane

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
merthyr_bill

nobody in the BBC should earn more than 50k. It is a public service. the ‘talent’ can be got by giving opportunities to people to enter TV before moving onto the commercial stations. The idea that the head of the BBC gets almost a million is shocking – morally bankrupt and I’m surprised it’s not actually criminal.

Likewise, giving Tuscan Toynbee’s hubby almost half a million a year to head up the propaganda section of the audit commission was disgraceful – and for her to attack the government without declaring her interest beggars belief.

The entire Guardian was funded publicly through public sector non-job advertising, another major Labour government fraud, similar to giving public money to the Unions and receiving it back in donations. Criminal.

As for Jack Dromey – first man even to get through an all-female shortlist. he must be proud
http://twitter.com/elmyra/status/2023194403799041 Mili

Over the last 10yrs CEO pay for FTSE 100 companies has increased by 160%; value of these companies has declined by 19%. http://bit.ly/9zRbDl
http://twitter.com/theoesc/status/2027922084864001 Theophile Escargot

High Pay Commission polling: most people unaware how much CEOs earn http://is.gd/gS2Lg
http://twitter.com/goodoldmj/status/2028362088316928 Martin Johnston

RT @leftfootfwd: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon
http://www.guyrintoul.com Guy Rintoul

FYI, you’ve missed out the percentage in the fourth paragraph – “and per cent thought the boss of a FTSE 100 company was paid less that £50,000.”
http://www.shamik.co.uk Shamik Das

Thanks guy! Quite incredible findings – 1 in 25 of those polled think a FTSE 100 boss is on less than £50k!
http://twitter.com/press_not_sorry/status/2030094117769216 Press Not Sorry

RT @OtherTPA: Public unaware of just how much those at the very top are paid: http://bit.ly/a0iy95 by @CompassOffice's Zoe Gannon (via @ …
13eastie

Spin and the politics of envy…

Wide sections of the public are ignorant? No s***, Sherlock!

If you know anything about public companies at all, you would know that directors’ remuneration is always invariably the first item on the agenda at AGM’s. Such pay is a matter of public record, and one on which shareholders are entitled to vote as individuals and on a case-by-case basis. EARNINGS ARE TANSPARENT, THEY COST THE TAX-PAYER NOTHING (QUITE THE CONTARY, IN FACT) AND THEY ARE OBJECTIVELY PERFORMANCE-RELATED.

Govt, public sector and QUANGO’s like the BBC, on the other hand, are funded by the tax-payer, and they do not operate in a free market, so there is no incentive to offer price competition or value-for-money, especially re. salaries. The BBC keeps its highest salaries secret from the very tax-payers who foot the bill for them.

“the values of these [FTSE100] companies has declined 9%”

Indeed, this is one of many negative indicators traceable over the last decade of Labour destruction. See also: unemployment; the pound; national debt; budget deficit. For all of which, many thanks, Gordon!

All the commissioners on the HPC are in the top 1% of earners, by the way.

Trebles all round!
merthyr_bill

just a quick word on stats…”4 per cent thought the boss of a FTSE 100 company was paid less that £50,000″

we cannot glean that from the evidence. maybe 4% reported that as their answer to a questionnaire or survey. but 4% is very low and within the noise of people taking the mickey. for this sort of survey you can ignore anything below about 10% as a rule. 4 out of 100 people are annoyed at being approached in the street or phoned up and give a stupid answer.

as for the rest of the article it just seems like gibberish. certainly poorly explained, not showing a level of understanding of stats and in places just bizarre. for example “When it came to guessing how much these top bosses earned, 63 per cent of people either didn’t know or thought that they were paid less than £1million”. this doesn’t really mean anything in english. I would certainly expect better from one of my post 16 students or a brighter one of the 10-14 year olds.
merthyr_bill

“over the last ten years CEO pay for FTSE 100 companies has increased by 160 per cent and yet the value of these companies has declined by 19 per cent.”

the CEOs are working in an incredibly business-hostile atmosphere. to only have your company fall in value by 19% over 3 terms of labour government seems extraordinary and well worth a 160% pay rise. history shows us that. they have taken their companies through the terror and now they are being rewarded. the sunny uplands are on the horizon!
mike

how much does the photographer at number 10 earn and how do i apply
http://twitter.com/mswigsy/status/2101883757928448 Wendy Maddox

Here's that fat cat again!!: RT @leftfootfwd: Public unaware of just how much those at the very top are paid http://bit.ly/cpNoWb
http://www.george.irvin.com George Irvin

@Adam Bell:

You can’t seriously be suggesting that the market for top CEO remuneration is ‘efficient’ when all the inter-coutry comparisons suggest otherwise.
Mr. Sensible

Mr Mouse, ‘public service gravy train?’ What about the fact that boardroom pay in the FTSE 100 has gone up by 55% in a year?

At the same time as the economic downturn!
http://twitter.com/dooley1961/status/2129131894472704 Jane Gallagher

So, ConDems why pick on the poorest? RT @leftfootfwd: Public unaware of just how much those at the very top are paid http://bit.ly/cpNoWb
http://twitter.com/blogsoftheworld/status/2219900898643968 blogs of the world

Today is the official launch of an independent inquiry into high pay, established by Compa… http://reduce.li/21rzog #those
Anon E Mouse

Mr.Sensible – Neil Kinnock (and his wife) are MULTI MILLIONAIRES from working for the EU – that’s public service. And their daughter and son in law work for the EU as well surprise, surprise.

Mark Thompson of the BBC earns nearly £1 MILLION a year from his job.

180 civil servants earn more than the Prime Minister – as does Ed Miliband at the moment since he refused to return his £20K from becoming opposition leader. Charming.

The FTSE 100 companies are private enterprises and as long as they pay their taxes what does it have to do with you what they earn?

I see control freaks still exist amongst Labour supporters. Obviously you didn’t take up that offer for a one way flight to North Korea…
merthyr_bill

Kinnock (spit) was always the worst of a bad bunch. A socialist while it involved redistributing other peoples money to himself. But a committed Europhile now he can do the same thing through a different route.
Anon E Mouse

I met Kinnock in Abergavenny once – he came across better in person than on TV in fairness.

Still a thieving scoundrel though but great speech against Deggsy… ah they were the days…
http://declineofthelogos.wordpress.com Adam Bell

@George Irvin:

That’s the opposite of what I said. I said that there’s an interesting debate to be had around the CEO market, but purely indexical research like this doesn’t help get to the root causes of it.
http://twitter.com/fnafilms/status/2465614618689536 zahra

@lmcnelly @TedHope That depressed me… As did this http://www.leftfootforward.org/2010/11/high-pay-commission-launch/
http://twitter.com/greegreece/status/2522521186340864 Tony Thomas

Public unaware of just how much those at the very top are paid http://bit.ly/cP8WlF
http://twitter.com/nickbloke/status/2546212687314944 Nick H.

RT @leftfootfwd: Public unaware of just how much those at the very top are paid http://bit.ly/cpNoWb
http://twitter.com/kerryabel/status/2777234666430464 Kerry Abel

Only just seen this. CRAZY. Current ave total pay of FTSE100 CEO is £4.9m (Income Data Services) http://bit.ly/cfENzh (via @butternotguns)
http://inequalitiesblog.wordpress.com/2010/11/23/talking-about-pay/ Everyone’s talking about other people’s pay | Inequalities

[...] private sector. To get some press attention, the Commission started with some polling showing that people underestimate high pay, and we don’t think that people deserve levels of pay this [...]
http://www.leftfootforward.org/2011/11/high-pay-commission-report-cheques-with-balances-why-tackling-high-pay-is-in-the-national-interest/ Unless pay gaps are reduced, we’ll end up with Victorian levels of inequality | Left Foot Forward

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