UK bosses best paid in Europe

Vodafone CEO's bonus was criticised by shareholders

The gap between the soaring salaries of British bosses and poorly paid factory-floor workers has widened to record levels, a survey suggests.

Chief executives in the UK are the best paid in Europe - taking home an average package of more than £500,000 a year, business magazine Management Today found..

At the same time the average pay of manufacturing workers in the UK, at an average of £20,000, is now the lowest of any of the world's developed countries.

The survey came on the day that National Lottery operator Camelot unveiled a surge in directors' pay despite a fall in ticket sales.

The survey suggests that the average UK chief executive's salary package has risen almost one-third since the last survey in 1999.

With CEOs earning almost a third more than they were two years ago, fat cat pay shows no signs of letting up

John Monks, TUC General Secretary

The issue of directors' pay has provoked angry scenes from both workers and shareholders at a number of recent annual general meetings, especially those for Marks and Spencer, Marconi, Railtrack and Vodafone.

But while chief executive pay has risen by 29%, the UK has taken Australia's place as the developed country which pays its manufacturing workers the least.

The survey has prompted further calls from trades unions to curb "fat cat" pay and improve accountability.

Pay league

UK manufacturing workers earn on average £20,475 a year, below the UK national average for full-time workers, and far less than in Japan where a similar worker would earn more than £36,000.

In France, manufacturing workers earn on average £24,574 and in the US they earn £31,603.

CEO pay

UK: £509,019

Australia: £457,139

Japan: £385,128

France: £382,128

Sweden: £311,400

Germany: £298,223

UK chief executive salaries are second only to the US.

In the US, a chief executive earns on average £992,974 compared with £509,019 in the UK.

But UK chief executives are paid 33% more than their French counterparts - the next highest paid in Europe on £382,128.

Manufacturing pay

Japan: £36,779

US: £31,603

Germany: £26,124

France: £24,574

Sweden: £23,034

Australia: £21,010

UK: £20,475

Bosses in Sweden are the second lowest paid, receiving £311,400 a year, leaving the Germans at the bottom of the pay pile with £298,223.

TUC General Secretary John Monks said: "With CEOs earning almost a third more than they were two years ago, fat cat pay shows no signs of letting up."

Mr Monks wants the government to ensure that employees have a say in directors' pay, as well as a vote on pay at their annual general meetings (AGMs).

Working week

Britons may work more than most of Europe, but the amount of time spent behind British desks has declined.

The UK's average 40-hour week is down from 43.9 hours in 1999, which puts the British on a par with Germany and slightly behind France.

French workers work 39.6 hours each week and Swedes manage the lowest number of working hours, putting in an average of 37.9 hours each week.

Outside of Europe, Americans clock up the same number of hours as Britons but survive on as little as nine or 10 days off a year compared with British workers' 20-25.