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

For further comments or to arrange an interview, contact Head of Communications Kate Andrews: | 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.

Sam Bowman's comments on the UK's housing crisis feature in the Daily Mirror

Deputy Director Sam Bowman's comments on the UK housing crisis feature in the Daily Mirror.

Experts say that the reason the scheme is not working is that it fuels house price rises putting home ownership out of the reach of many.

The maximum purchase price for a home under the scheme is £600,000.

Sam Bowman of the Adam Smith Institute think tank said: “The housing market is suffering from insufficient supply.”

Read the full article here.

ASI blog "Britain needs more slums" features in the Independent

An Adam Smith Institute blog, written by the 2015 winner of our Young Writer on Liberty award, has featured in The Independent:

“Britain has a sore lack of proper slums,” argued Clifford, winner of the 18-21 age category of the Institute’s “Young Writer on Liberty” competition. “Government regulations designed to clamp down on ‘cowboy landlords’ restrict people’s ability to choose the kind of accommodation in which they want to live.”

Clifford suggested that communal living would be more attractive to young people, admitting that he too was struggling to get on the housing ladder.

Read the full article here.

Kate Andrews's comments on the London tube strike feature in The Daily Mail

Head of Communications Kate Andrews's comments on today's tube strike were featured in The Daily Mail.

Kate Andrews, of the free-market Adam Smith Institute, said commuters would be shocked at striking Tube drivers earning twice as much as those operating buses.

She said: ‘Today’s strikers have a cushier salary and benefit package than many of those who take the Tube to work – and yet those less well-off are inconvenienced once again.’

The quote was also used in a Mail Online article here.

Kate Andrews's comment piece on ASI blog 'Britain needs more slums' features in City A.M.

Kate Andrews discusses ASI blog "Britain needs more slums" in City AM.

A blog recently posted on the ASI website seems to have driven some angry reaction. “Britain needs more slums” proclaimed Theo Clifford, the winner of our 18-21 category of our Young Writer on Liberty Competition.

While the ASI has a policy of publishing a whole range of opinions (views expressed on the blog are those of the writers, not the organisation), I can certainly throw my support behind this piece, which draws attention to the ongoing housing crisis across the UK and mocks the government's stance on regulation.

Read the full comment piece here.

ASI report "Cash in the Attic" features in The Daily Telegraph

Adam Smith Institute report Cash in the Attic has featured in The Daily Telegraph:

Research last year by the Adam Smith Institute highlighted a possible £90bn-worth of privatisations, including assets such as Network Rail and trust ports including Port of Dover. However, the study went further by identifying a further £337bn of assets listed under the 2007 Public Asset Register. Even if less than 10pc of these land assets were sold it would more than double the potential windfall that the Government can hope to gain from its proposed sell-offs.

Read the full article here.