Big Corporate CEOs Hike Their Salaries
The salaries of chief executives in the FTSE 100 increased by more than a third last year, but most small-business owners have frozen their own pay, the Forum of Private Business (FPB) has said.
During the same period, average pay levels for workers across the UK increased by just 2% — half the rate of inflation — effectively meaning a pay cut for most employees.
Small creative-agency Bliink’s managing director, Tim Coates, said most small-business owners would choose to reinvest surplus funds rather than take large salaries.
“For us, like many small firms, the priority is to grow the business and invest in new strategies or at the very least, maintain a sensible cashflow.”
Commenting on the figures, Trades Union Congress secretary, Brendan Barber, said:
“Pay arrangements for chief executives bear little resemblance to economic reality.”
FPB spokesman, Chris Gorman, agreed that the picture for small firms was very different.
“Few business owners are able to award themselves even modest pay rises in the current economic climate.”
“Towards the end of last year, small firms were reporting slight increases in turnover, but hikes in fuel costs and energy bills have wiped out profitability for many. Most small firms are still in survival mode and pay rises are likely to be way down the priority list.”
Gorman said that most small and medium-sized business owners took salaries that reflected the fortunes of their business, rather than simply setting a salary level unrelated to trading levels.