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TUC targets executive pay

28/12/2006

Britain needs a debate on the overpaid top managers and company directors who prefer enduring 'fat cat' headlines to pay cuts, the Trades Union Congress (TUC) believes.

TUC general secretary Brendan Barber has launched a campaign calling for a national debate on top pay levels, pointing out that company directors' pay has increased 17 times faster than the national average since 2000.

He also cited the growing gap between pensions provision for executives and workers, as well as the rise in City bonuses which this year are set to total nearly £9 billion.

"Plump felines became fat cats some years ago, now they are dangerously obese," Mr Barber said.

"Many now earn more money than they can possibly need, but the size of their pay packet has become a status symbol. My worry is that this is all leading us by stealth towards an Americanisation of UK society where the gap between rich and poor is no longer worthy of comment."

While accepting that high salaries for those with the greatest skills and responsibility are justifiable, Mr Barber says that current levels are nevertheless excessive.

He argues that rising executive pay affects ordinary people negatively by helping stoke inflation and pushing property prices up.

"There is still an important debate to be had about how big and how justified these extra rewards should be," he concludes, calling for shareholders to take action against those who run their companies.

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