The Fat Cat Diet: A progressive plan for wage fairness
There needs to be new curbs on excess and unrestrained pay by removing executive pay (more than £300,000) from corporation tax deductibility. The call comes in a new CLASS report called ‘The Fat Cat Diet: A Progressive Plan for Wage Fairness’ calls for a new tax on excessive pay as research finds that Britain’s top executives will trouser more cash by 4th January ('Fat Cat Friday') than the average worker will see in their pay cheques all year.
A combination of this recommendation and strengthening trade union rights would help share the proceeds of business more fairly throughout the workforce, give the economy a boost with more consumer spending, and help the public purse through increased tax revenues.
Read the report here:
It argues that the continuing and ever-growing gap between average workers and their CEOs does not have public support and attempts to cut corporate excess to-date have largely failed.
In a time when so many workers are struggling to make ends meet and real wages have still not recovered from their 2008 peak, it is not right that chief executives are now taking home around 150 times the average UK pay check. Bringing an end to such massive pay disparities will benefit the economy and society.
The report comes amid the longest pay squeeze since Napoleonic times. The CLASS report calls for reform of executive remuneration committees to give workers more say on the pay of top bosses to stop the expansion in pay ratios between executives and average workers in the same company.
It is authored by Liam Kennedy (CLASS), Luke Hildyard (High Pay Centre), Sarah Anderson (Global Economy Project) and Professor Richard Murphy.