EDITION 1012
25 MARCH 2024

Good morning

With a general election looming on the horizon, last week we asked the question: When do you want the next general election to take place? It would seem the overall majority want one now, with 56% of respondents choosing Spring 2024, followed by January 2025 with 22%. This week, we ask the question: Do chief executives really deserve such generous compensation?

As another week slips by, here are 10 things which caught my attention and may have escaped yours. Please feel free to share on social media and forward to your colleagues and friends so they can also subscribe, learn and engage. I would be very grateful if you did.

Before you dive in, remember our POTENTIAL workbook [see below] is on offer for only £99. This unique workbook will help guide your organisation to its highest potential. Contact us today to start your transformation.

William Montgomery
Editor and CEO of TEN

1. How to be fit for business. We sit for an average of 9.3 hours a day. A slew of studies have shown just how unhealthy that is, linking it to heart disease, obesity, and cancer. So next time you need to meet with a colleague, don't book a conference room. Take a walk. Aside from the much-needed exercise, there are numerous benefits. READ MORE

2. Inflation falling. European economies are seeing a drop in inflation rates, with the UK reaching 3.4% in February and the eurozone falling to 2.6% year-on-year. While prices are still rising for goods and services, the tide seems to have turned on the rate of inflation leading to speculation about what comes next. Experts suggest that while the drop in inflation has increased the probability of summer rate cuts, central banks are not expected to cut rates just yet. What could keep the Bank of England cautious is strong services inflation and a big bump in the minimum wage coming in April. Interest rates were left unchanged at 5.25%, the highest level in 16 years. Bloomberg

3. Equality vital for future growth. The head of the International Monetary Fund (IMF), Kristalina Georgieva, has stressed that tackling inequality is crucial for achieving strong economic growth over the next 100 years. In a speech at King's College, Cambridge, Georgieva said: "We have an obligation to correct what has been most seriously wrong over the last 100 years - the persistence of high economic inequality". She added that while there has been a significant rise in living standards over the last century, the benefits have not been shared among everyone equally. The IMF has proposed two possible paths for the next century: a "low ambition" scenario with modest improvements in the standard of living and a "high ambition" scenario focused on building a more sustainable and fair global economy, which could lead to 13 times higher living standards. The Guardian

4. Do chief executives really deserve such generous compensation? In 1965, the CEO-to-employee compensation ratio at US companies was 20:1 – for every $1 earned by the average employee at a company, the chief executive at that company made $20. By 2021, the ratio was 399:1. Although the pay disparity at UK companies is not quite so stark, recent figures show that median executive pay at FTSE 100 companies is more than 100 times that of the median full-time worker. Moreover, that gap is widening. Executive pay is always a contentious subject, but the issue is drawing even greater attention now as many employees struggle with the cost of living. Do chief executives really deserve such generous compensation? VOTE HERE

5. Majority of populations declining. According to a study published in The Lancet, more than three-quarters of countries globally will not have high enough fertility rates to sustain their populations by 2050, rising to nearly all countries by century-end. The fertility rate for western Europe is expected to hit 1.44 children per woman in 2050, and 1.37 in 2100. This shift is likely to bring challenges as working populations shrink and pressures on health and social care increase due to a larger older population. It will necessitate a reorganisation of society, the authors said. However, by 2100, half of all live births will be in lower- and middle-income south-eastern and south-western African countries. The study authors called for improvements in healthcare and climate change readiness and poverty elimination as part of preparation for this shift. The Lancet

6. Digital society excluding families. Research shows that almost half of UK families are being excluded from today's modern digital society. The study by academics at the University of Liverpool, Loughborough University, and the digital inclusion charity the Good Things Foundation found that 45% of families with children lack the online skills or access to devices, data and broadband required to participate in our technology-driven world. There is a significant digital divide across Europe, as the map of internet usage across the continent indicates. The Guardian

7. Europe's leading start-up hubs. The UK boasts more start-up hubs than any other country in Europe, according to a new ranking from the Financial Times, Sifted, and Statista. Of the 125 top incubators and accelerators that featured on the list, 24 are in the UK, followed by 16 in Germany and 15 in Spain. The three top-ranked hubs are UnternehmerTUM in Germany, Hexa in France/Belgium and SETsquared in the UK. In addition to funding, these hubs often provide support on everything from engineering to marketing, while also providing a workspace and networking opportunities. "While Silicon Valley and Y Combinator have long dominated the start-up narrative, Europe is carving out its own path to innovation.” Financial Times

8. Vehicles can now be donated to Ukraine instead of being scrapped under Ulez. Motorists planning to scrap vehicles that do not comply with London's ultra-low emission zone (Ulez) standards can now apply to have their car, minibus or van donated to Ukraine for humanitarian or medical purposes. To take part in the scheme, motorists who are eligible for the Transport for London (TfL) scrappage payment have to apply to the charity British Ukrainian Aid. If successful, they will receive the scrappage payment they would have been due, and their vehicle will be transported to Ukraine by volunteers. The Guardian

9. Next space race is for talent. NASA is having a tough time securing talent, because SpaceX and Blue Origin are on a hiring spree - and paying a lot more for starting positions. It notes that Blue Origin and SpaceX are boosting their workforces by 10% to 15%; the former has roughly 1,500 openings, while the latter has about 1,100. A NASA exec said the government agency has a tougher time competing salary-wise with private companies, and that's accurate: SpaceX's low-end aerospace engineer salary is US$95,000, compared to NASA's starting pay of about US$55,000. Bloomberg

10. The bottom line. The highest outstanding student debt in the UK is £231,000, according to data from the Student Loans Company (SLC). The average student loan debt held by a graduate leaving university is £44,940 in England. BBC