British Fat Cats Get the Cream

1.57.37pm BST (GMT +0100) Thu 31st Jul 2003

Vincent Cable MP, Liberal Democrat Shadow DTI Secretary

Britain's top executives got average pay rises of 23% in the last year according to new research by Management Today magazine.

Chiefs of FTSE 100 companies saw average pay increase to nearly £1.7m. Chiefs of midsize companies became the 2nd best paid in the world with only their American counterparts being paid more. UK directors in London (£210,000) are paid double the amount of their counterparts in the West Midlands (£105,000).

Vince Cable MP, Liberal Democrat Shadow DTI Secretary, said: "23% increases are shocking by any measure."

"For the most part, these are not rewards for success as most FTSE companies have been going through a torrid time as falling share prices hit shareholder wealth."

"This survey demonstrates that the UK's top executives are not being rewarded on merit or by market forces, but are supping the cream served up by other fat cats on remuneration committees."

"It is essential that Patricia Hewitt gets to grips with this problem instead of merely tossing it around for discussion."