Sam Bowman’s comments on executive pay feature in: Financial Times, Huffington Post & BBC News

Deputy Director of the Adam Smith Institute Sam Bowman’s comments on high executive pay featured in the Financial Times, Huffington Post, and in a BBC News article:

From the Financial Times:

But Sam Bowman, deputy director of the Adam Smith Institute, said: “Investors see executives as extremely important to the value of firms, with the strategic decisions they make often determining whether a firm flourishes or goes bankrupt. For that reason, it can be sensible to pay a lot to get skilled executives with good judgment.”

Read the full article here.

From the Huffington Post:

Business lobby group CBI said high pay was only justified by “exceptional performance”, while think tank, the Adam Smith Institute reportedly justified it by saying the salaries rewarded “extraordinary talent and skills” and the good decision-making that is “as close to invaluable as one can get”.

Read the full article here.

From the BBC:

But the free-market think tank, the Adam Smith Institute, was more forthright, saying that the right chief executive could make or break a company.

“CEO pay rewards extraordinary talent and skills in a highly competitive, globalised market,” said its deputy director Sam Bowman.

“Good decision-making from the top might not be invaluable, but CEO pay reflects that it is as close to invaluable as one can get.”

 

Read the full article here.

Kate Andrews debates milk prices on BBC 5 Live, BBC Radio Leeds, and BBC Radio Wiltshire

Head of Communications Kate Andrews debated UK milk prices, farming subsidies, and what is best for UK consumers on BBC 5 Live, BBC Radio Leeds and BBC Radio Wiltshire.

Listen to the BBC 5 Live Breakfast Show interview here. (Starts 02:08:08)

Listen to the BBC Radio Leeds interview here. (Starts 9:48)

Listen to the BBC Radio Wiltshire interview here. (Starts 33:08)

Press Release | Executive pay: because they’re worth it

For further comments or to arrange an interview, contact Head of Communications Kate Andrews: kate@adamsmith.org | 07584 778207.

Commenting on the High Pay Centre’s briefing on executive pay, Deputy Director of the Adam Smith Institute Sam Bowman said:

Investors see executives as extremely important to the value of firms, with the strategic decisions they make often determining whether a firm flourishes or goes bankrupt. For that reason, it can be sensible to pay a lot to get skilled executives with good judgement.

It’s not hard to find examples on both sides: when Steve Ballmer stepped down as CEO of Microsoft, the firm’s value increased by billions overnight. Compare Ballmer to Tesco’s CEO David Lewis, who investors judged would make the firm millions of pounds more valuable.

A Steve Jobs can make a firm; a Steve Ballmer can break it.

CEO pay rewards extraordinary talent and skills in a highly competitive, globalized market. Good decision-making from the top might not be invaluable, but CEO pay reflects that it is as close to invaluable as one can get.

Notes to Editors:

The Adam Smith Institute is a free market, libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.