October 22 2014 Latest news:
Kate Scotter, title
Tuesday, August 19, 2014
Businesses in the East will pay the price for the talent they are after, it has emerged after a report revealed that top executives are paid more than 140 times the wages of their average employee.
Think-tank High Pay Centre called on the government to take “radical action” on top pay after its study found that executive pay has increased “dramatically” in relation to most workers over the past 30 years.
According to the research, the average chief executive of a FTSE 100 company was paid between 13 and 44 times that of its average employee back in 1980, but now that radio is 143.
The study was published after figures from the Office for National Statistics last week showed that average pay has fallen by 0.2pc over the past year.
It has prompted a warning that the gap in wages was creating a “deep sense of unfairness”.
In East Anglia, although it is accepted that market demand has driven the wages of chief executives up, it is believed that money is not the only factor which brings top managers to the region.
David Sneddon, head of executive search for recruitment consultant Cooper Lomaz, which has offices in Norwich, Lowestoft and Bury St Edmunds, said: “A lot of executives who come to this part of the world come for lifestyle reasons more than the money.”
He added: “It’s too easy to say that people will pay over the odds to get the talent they want but they will.
“Competition is one thing; if you need someone to come in and do a piece of work right at the top of an organisation, you might be competing against other companies that equally want that talent. The one who pays most will win.”
One of East Anglia’s largest crane hire companies, Quinto Crane & Plant Ltd, has been bought out in a multi-million pound deal, with the new owner promising to safeguard the jobs for its 125 employees and guaranteeing future investment.