Directors in top UK firms get paid 120 times higher than employees

London: A new report has revealed that the Directors of the top 100 UK companies earn 120 times average sum earned by their employees.

According to the report by Incomes Data Services (IDS), a director now typically earns 2.43 million pounds a year, while the official figures put the average annual salary at 27,000 pounds, the BBC reported.

The report also revealed that director's salary saw 278 percent rise while employees' was only 48 percent in 14 years and the long-term impact of years of high earnings growth has widened the pay differential between FTSE 100 chief executives and the rest of the workforce.

Steve Tatton, editor of the IDS report, said that the pattern of pay growth highlighted the complex make-up of directors' remuneration and salary rises may be modest but this can be more than made up for by the receipt of incentive payments.

Tatton also added that when such incentives paid out, they could pay out substantial sums, giving a significant boost to directors' earnings.

The best paid chief executives were in media, marketing and telecoms, while the lowest were in retail and distribution.