I note that the press is reporting substantial average pay increases for DTSEV 100 CEO’s this morning who do, on average now earn £5.5 million a year. I wrote this blog on the issue of high pay four years ago. Not much has changed since so I offer it again:
TUC has published a new report this morning called Bonus Season. The summary says:
Ending corporation tax relief for pay and bonuses worth more than 10 times average annual earnings (£26,200) could raise around £1.7bn a year if applied to the banking and financial services sector, according to a new TUC report published today (Monday).
The TUC report Bonus Season uses data from the Labour Force Survey to show that over a third (36 per cent) of employees earning more than £250,000 a year in the UK work in banking and finance.
The report then uses HMRC data to estimate that around 81,000 people have incomes of over £262,000 (10 times average annual earnings) that come primarily from employment, including 29,000 people in banking and finance.
The report finds that total pay on earnings above £262,000 in the finance sector – which the TUC believes should be disallowed as a deductible expense for corporation tax purposes – is around £6.8bn a year.
He appears to be unaware of a rather important point.
You do not need to be a UK domiciled company to be listed in London. Thus you do not need to be subject to British tax law to be listed in London. And some of the FTSE100 companies are not.