It’s an intriguing set of circumstances that creates bedfellows of David Cameron and both the TUC’s Brendan Barber and Unite’s Len McClusky. But research from IDS last week evidencing a 49% rise in the pay of FTSE100 directors achieved exactly that. Both the trade union leaders and the PM were unified in their condemnation of such a statistic.
Average director’s pay within this group has now climbed to a wallet-bulging £2.7m. This is an impressive increase given that the FTSE100 share index has risen not a jot over the last 20 months. And over the last year, average wage increases have come in at a distinctly more anorexic 2.8%.
Startling contrasts in themselves. However, what affect will such a disparity in the both remuneration and apparent successes mean for the employer brands (and associated engagement levels) of organisations within the FTSE100?
If such businesses are attempting to deliver shared vision and values, behaviours and competences across their organisations, yet being rewarded with such utter disproportion, pleas for engagement may well be falling on deaf ears. One wonders if the credibility of the C-suite at such firms may have suffered as employees mull over their own salaries, which have actually fallen as a result of inflation hovering over 5%?
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