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Gulf in salary ratios widens

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The average hospitality employee earned less than 4% of his or her chief executive’s salary last year, according to a survey just published.

The Pay for Performance 2002 survey shows that the average worker in the industry earned £13,410. This represented 3.6% of the average chief executive’s salary, which increased by 2.9% on the previous year and stood at £375,919.

The worst ratios, according to the report, were at Compass and Whitbread, where employees earned 1.1% and 1.8% respectively of their chief executive’s wages.

The report read: “Ever-increasing salary packages for executives are widening the reward gap between those who lead and those who are led. The poor pay and working conditions for many in the industry do not attract or retain excellent workers.”

Meanwhile, the average bonus for chief executives rose 41.6% to £209,825, ranging from £928,000 at Diageo to £50,000 at De Vere.

Financial directors also did well, with average salaries increasing by 7.3% to £218,137. The average bonus for them was £119,500, an increase of 28.6%.

Salaries for operations directors and managing directors were also up, increasing by 9.7% to an average of £268,421. Bonuses increased by 16.4% to £193,460.

The report, which covers about 60 companies, was written by management consultant Janet Salmon. For a copy, contact Salmon on 020 8332 1594, or look on

by Louise Bozec

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