01 September 2000
Executive pay spirals out of control
Top executives' pay rocketed by over a fifth on average in the past year - four times the rate of increases for employees in general.
The annual Labour Research directors' salary survey shows that the pay rises of senior stock exchange executives are also far outstripping inflation, running at an average of 21% compared with inflation at 3%.
Number one in the list was Brian Ashford-Russell of Henderson Technology Trust, whose pay rose by a whopping 719% thanks to a ?6.33 million bonus.
Huge increases were also recorded by David Prosser, of insurance giant Legal & General, who got a 74% rise, and Chris Gent of Vodaphone, who had received a 65% rise even before the ?10 million bonus which recently caused uproar.
The rises have also helped to bolster the total number of millionaire directors recorded by Labour Research to an all-time high.
Each year the magazine examines over 2,000 annual reports of public and private companies and this year's survey has uncovered a record 138 directors earning ?1 million or more. This is nearly double last year's figure.
This league is topped by a Robert Edmiston of car importer IM Group, who earned ?7.7 million (apart from rock star Elton John, who earned nearly ?25 million as director of his own company, Happenstance).
The four Spice Girls and ex-Spice Girl Geri Halliwell feature as millionaire company directors for the first time. Posh, Baby and Sporty Spice each paid themselves ?6,066,364 from their companies while Scary Spice got ?1 less. Meanwhile, Geri Halliwell, who left the group to go solo, got ?5.8 million from her company.
Notes to editors
The September 2000 issue of Labour Research includes details of the highest paid directors on ?500,000 or more in both stock exchange and private companies.
The Labour Research survey is based on directors' basic salary, annual and longer term bonuses and benefits in kind. It excludes profits from share options and company pension contributions.
Notes to editorsLabour Research is published by the Labour Research Department, an independent trade union and labour movement organisation founded 89 years ago. More than 2,000 trade union organisations, including 55 national unions representing 99% of total TUC membership, are affiliated.
For more details contact Neal Moister on 020 7902 9818