The UK Government has recently announced that it is set to propose legislation that forces the UK’s largest firms to reveal pay ratios between chief executive and average worker’s salaries and the impact of future share price increases on executive pay.

Prime Minister Theresa May first proposed the law in August 2017 following research finding the ratio between FTSE 100 CEOs and their average employee pay was 129:1* in 2017.

It is thus very likely that some form of CEO pay ratio disclosure will become a mandatory annual reporting requirement for UK organisations within the next 12 months. This will be a new addition to the annual report in which CEO pay is expressed as a ratio to that of an average employee. On the surface this has the noble intention of creating both upward pressure on workforce pay and downward pressure on executive pay with a single measure.

HML have always been at the forefront of transparent pay reporting in advance of legal requirements. In 2017, HML Group were one of the first organisation to voluntarily publish its Gender Pay Gap. In that vein we will publish annually our CEO/Employee Pay Ratio.

Read our CEO Pay Ratio Report 2018 for more information.