IEA: Attacking CEO pay “stokes public hostility” and “misleads workers”
Director General at the Institute of Economic Affairs Mark Littlewood commented on the High Pay Centre’s analysis of FTSE 100 CEO salaries
“Comparing CEO salaries to the average salary serves to stoke public hostility, and misleads workers to believe that cuts at the top end will directly translate to top-ups at the bottom.
“In today’s globalised economy, the role of the chief executive has become significantly more important; the successes, failures and sudden departures of CEOs can increase or diminish a company’s worth by billions of pounds – which can also result in the gain or loss of thousands of jobs.
“By continuing our obsession with high pay, we dismiss the achievements of successful CEOs which benefit employees and customers alike; and we distract ourselves from tackling the critical issue of low pay and the cost of living crisis.”
Notes to editors:
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The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems and seeks to provide analysis in order to improve the public understanding of economics.
The IEA is a registered educational charity and independent of all political parties.
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