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UK corporations pay already wealthy shareholders £1.7bn per week.
This shareholder-first model is fuelling in-work poverty,
#inequality and the #ClimateCrisis.
This is what our research into #dividends & #buybacks with @The_TUC and @HighPayCentre found: 1/
This shareholder-first model is fuelling in-work poverty,
#inequality and the #ClimateCrisis.
This is what our research into #dividends & #buybacks with @The_TUC and @HighPayCentre found: 1/
Stagnating wages while shareholder pay rocket.
Over 5 years shareholder returns increased by 56% while the median wage for UK workers increased by just 8.8% (both nominal).
If workers had done as well as shareholders they would now be over £9,500 per year better off. 2/
Over 5 years shareholder returns increased by 56% while the median wage for UK workers increased by just 8.8% (both nominal).
If workers had done as well as shareholders they would now be over £9,500 per year better off. 2/
#Inequality in the UK is out of control. The
richest 34 people in the UK own the same wealth as the bottom 40% of the population.
Shareholder returns are accumulating at the top.
Richest 10% get 55% of investment income and 46% of pensions, poorest 10% own less than 1%. 3/
richest 34 people in the UK own the same wealth as the bottom 40% of the population.
Shareholder returns are accumulating at the top.
Richest 10% get 55% of investment income and 46% of pensions, poorest 10% own less than 1%. 3/
Unlike going to work, the owners of shares don’t have to do anything to get rich. The relationship between returns to capital vs returns to labour is a major driver of inequality.
Fay Lewis’ 1914 political performance artwork put it simply “Everybody works but the vacant lot” 4/
Fay Lewis’ 1914 political performance artwork put it simply “Everybody works but the vacant lot” 4/
Gender inequality is deeply embedded within the history of #capitalism. Multinational corporations exploit gender inequity to maximise shareholder profit.
In supply chains where women prevail the gap between the living wage is 16% larger than in male dominated industries. 5/
In supply chains where women prevail the gap between the living wage is 16% larger than in male dominated industries. 5/
Pressure to maximise profit squeezes wages. In the UK 8 million people are in poverty despite living in a working household.
Retailers paid over £2bn to shareholders in 2018, despite none of them being Living Wage Foundation accredited. 6/
Retailers paid over £2bn to shareholders in 2018, despite none of them being Living Wage Foundation accredited. 6/
Food & drinks companies paid almost £14bn – more than they made in net profit (£12.7bn). To put that into perspective, just a tenth of this shareholder pay-out is enough to raise the wages of 1.9 million agriculture workers around the world to a living wage. 7/
In order to avoid catastrophic #climatechange, the vast majority of fossil fuel reserves needs to be left in the ground.
In 2018, BP spent 14 times and Shell 11 times, more on their shareholders as they invested in low carbon activity. 8/
In 2018, BP spent 14 times and Shell 11 times, more on their shareholders as they invested in low carbon activity. 8/
The shareholder first model doesn't even work for shareholders in the long term.
27% of the time dividends & buybacks were higher than profit. In 2015 & 2016 the FTSE 100 paid more to shareholders than they made in profit.
Companies are literally eating themselves. 9/
27% of the time dividends & buybacks were higher than profit. In 2015 & 2016 the FTSE 100 paid more to shareholders than they made in profit.
Companies are literally eating themselves. 9/
We need significant reform of our corporate governance system to address this including:
- No dividends if no living wage
- Worker Directors on company board
- Reforming the responsibilities of directors
10/10
- No dividends if no living wage
- Worker Directors on company board
- Reforming the responsibilities of directors
10/10
(oh and read the report here http://highpaycentre.org/pubs/how-the-shareholder-first-business-model-contributes-to-poverty-inequality )
