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Ocado has largest pay gap between CEO and staff, report finds

Online grocer Ocado reportedly has the highest pay gap between workers on the shop floor and those in senior level positions, according to a new report by the High Pay Centre.

The report found that Ocado’s CEO Tim Stenier was paid £58.7m last year, while his employees made an average of £22,500. JD Sports had the second highest levels of disparity with CEO Peter Cowgill earning £5.6m per annum, whilst his workers earned £18,300. 

In third place was supermarket giant Tesco, with it’s CEO earning £6.4m and its employees taking home £21,000. 

The findings come as the retail giants continue to gain press attention for trading well during the pandemic. Just last week Ocado reported that revenue soared by 35% in the 13 weeks to 29 November 2020, driven by a “strong” demand for online grocery. 

In addition Tesco was able to pay back its £585m business relief rates, with the business noting that it has been able to remain “resilient” throughout Covid-19

The High Pay Center said it has made a number of recommendations to help close the pay gap.

It said: “Expanding the application of pay ratio reporting requirements to cover large employers beyond listed companies, and expanding the reporting requirements to cover indirectly employed workers.

“Requiring more detailed reporting on high earners between the top quarter and the CEO, potentially enabling better understanding of the potential to redistribute pay from a small number of very highly paid employees to low- and middle- income earners.”

It added: “Requiring companies to disseminate their pay ratios directly to employees in an annual update, to give workers a better understanding of where they are situated in the company pay structure and enable them to make an informed judgement on the fairness of their pay.”

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