New research by the TUC and the High Pay Centre shows the extent to which financial returns to shareholders are dramatically outpacing wages across the wider economy.
Between 2014 and 2018, shareholder returns grew almost 7 times faster than workers’ annual wages. If workers’ pay had risen at the same rate as shareholder returns, the average worker would now be over £9,500 better off.
These findings demonstrate that the shareholder first approach to business is contributing to poverty, inequality and climate change, and strengthens the case for reforming business so that it serves all stakeholders, not just lining the pockets of shareholders.
To join us in calling for change, get involved in the How do Companies Act campaign and sign the open letter to policymakers in the UK calling for an urgent review of our legal framework that currently prioritises shareholder profit over anything else.