It just isn’t helpful. It’s unfair. In the UK we are teetering close to recession, and yet bosses are taking on average 11% pay hikes. Meanwhile, staff who are on much less to start with are managing just 2%.Don’t get me wrong, I have nothing against bosses making more, but when you’re already getting many times the amount your lower paid workers are on, how can you take a double-digit percentage increase, while employees get a low single? Take a boss earning millions, as an example. If he or she gets a 10% rise every year for 10 years their money goes up an eye-watering £1.6 million. An employee on £25k getting a 2% annual pay rise will increase their gross wage by £13,600 over the same period. And yet this is what is going on. I’ll say it again. I have nothing against bosses. Even ones that don’t own their businesses, getting good pay rises. But if they can take 10%, then so should their workers. And if there’s no money when the profits are counted to give workers a big raise, then there shouldn’t be a big stack of cash for the bosses either. You might even argue that when things don’t go well it’s the bosses who should take the hit since they already get big bucks. I make no secret of the fact that I pay myself very well, but if the profits aren’t there I get a pay cut. Occasionally they have been big hits, usually around the time of recession. I really cannot understand how executives at publicly-listed companies can go in front of their boards and ask for huge pay deals when they haven’t done a good job. Perhaps this is why there have been so many shareholder revolts in recent years?
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