The STTK labour union has highlighted a growing pay gap between executives and average workers in Finland. CEO pay in Finland outpaces the average worker's by a factor of 34, reports STTK, a labour market organisation representing around half a million residents.
The study found that in 2017 it took the average employee 34 days to earn as much as an executive does in a day, up from 33 days in 2016. In 2017, annual earnings for private sector employees averaged 40,250 euros.
STTK said it was important that pay ratios between senior management and staff don’t spiral out of control.
”Economic research has indicated that relatively small income discrepancies positively impact welfare and economic growth,” STTK economist Antti Koskela said in a statement.
STTK’s drew its calculations from Statistics Finland and listed companies’ annual reports. The union was inspired by Fat Cat Day in the UK, which takes a critical view of pay packets handed to big executives in relation to what they pay their employees.