By: Maria Espadinha
May 29, 2019
The pension contribution rates of FTSE 100 chief executives are on average four times higher than those received by employees, research has found.
After analysing FTSE 100 companies’ financial reports in 2018, pensions consultancy LCP found about half paid defined benefit pension contributions for their CEOs of 25 per cent or above.
At the same time the minority, only about 15 per cent of the FTSE 100 companies, paid CEO pension contributions or cash in line with their workforce.
LCP’s report also looked at contribution levels in the context of how much those companies paid out in dividends to shareholders.
In 2018 FTSE 100 companies paid around seven times more to shareholders than they paid into their DB schemes, an increase from paying six times more in dividends during 2017.