London - Staff are “significantly” demotivated if they think their bosses are overpaid, a report found.
The pay of executives is 183 times the average employee’s salary – up from 47 times in 1998.
Growing pay inequality is affecting staff motivation and causing a “crisis” in CEO pay, the Chartered Institute of Personnel and Development warned. A study by the group found three in five workers felt demotivated by high levels of pay handed to chief executives.
Seven in ten said executive pay was “too high” or “far too high”, with just under half convinced their own chief executive was paid too much.
Only a third of the 1 000 workers surveyed believed their boss was rewarded in line with company performance.
The CIPD’s Charles Cotton said: “At a time when the average employee has seen their salary increase by just a few percentage points over the last several years, we need to take a serious look at the issue of top executive reward.”
The group called for companies to be required to publish the pay ratio between the chief executive and average employees.
Daily Mail