pay ratio

Privatisation fails our most valued national institution: the NHS - Jeremy Corbyn

Jeremy Corbyn MP, Leader of the Labour Party, commenting on figures showing private provision in the NHS has more than doubled since 2010, said:

“The Conservatives are privatising our NHS by stealth despite the repeated failures and costs of private provision. The latest figures show private provision in the NHS has more than doubled under the Conservatives.

“Privatisation fails our most valued national institution: the NHS. It saddles us with an expensive and unnecessary internal market. It puts tax avoidance, not patient care, at the heart of its management. It also promotes excessive boardroom pay and grotesque inequality.

“Health privateers are earning huge sums at taxpayers’ expense, while health workers have faced a pay freeze. When health services are privatised, the brakes come off the pay of the executives in charge.

“On Tuesday, I announced that Labour will insist on a pay ratio of no more than 20:1 for any company awarded a government contract.

“That will apply to the private health companies who bid for NHS contracts and pay their top executives indefensible and sometimes obscene amounts.

“Shrinking the widening pay gap in health will support Labour’s plans to end health privatisation and bring services into a secure, publicly-provided NHS.”

Legal & General Said to Plan Detailing CEO-to-Worker Pay Ratio

Insurer Legal & General Group Plc plans to disclose how much more its chief executive earns than rank-and-file employees, becoming one of the first big U.K. companies to respond to growing concern about … Read more

The CEO-to-employee pay ratio across many U.S. companies is truly absurd. 

But not at Gravity Payments, where CEO Dan Price just decided to take a pay cut from $1 million to $70,000 to give every employee of his company a boost. 

After reading a study on happiness that suggested extra money makes a big difference in the lives of people who make under $70,000 a year, Price did something that would never occur to most CEOs. He told his staff that over the next three years, every employee of his company will make at least $70,000, reports the New York Times.

According to the New York Times, the pay-rate increases will benefit about 70 of his 120 employees, of which about half will see their income double. Before the announcement, that company’s average annual paycheck was $48,000.

Bravo, Dan!