"How the Shareholder first business model contributes to poverty, inequality and climate change: A briefing note from High Pay Centre and the TUC", 13 November 2019

Research by the TUC and the High Pay Centre shows the extent to which returns to shareholders, in the forms of dividend payments and share buybacks, are dramatically outpacing wages across the wider economy.

The analysis found that across the the FTSE 100 returns to shareholders... increased by 56% between 2014 and 2018... Nominal pay for the median worker increased by just 8% over the same period.

If wage increases had kept pace with shareholder returns, the typical worker would now be over £9,500 better off...

This totally undermines the argument that shareholders are exposed to the greatest risk of all business stakeholders, as it suggests that they can expect consistent returns, regardless of profitability...

Conversely, the evidence from the research strengthens the case for giving other stakeholders a say in governance structures through measures such as stronger trade union rights and worker representation on boards.