ASI comments on high pay feature in BBC News and Sky News articles
Executive Director Sam Bowman's comments on the High Pay Centre's promotion of 'Fat Cat Tuesday' have featured in both BBC News and Sky News articles. From BBC News:
The calculations were criticised as "pub economics, not serious analysis" by the Adam Smith Institute.
"None of these complaints are valid unless the High Pay Centre thinks it has a better way of estimating the value of executives to firms than those firms themselves," said the institute's executive director, Sam Bowman.
"The High Pay Commission's complaints only make sense if you assume firms don't actually care about making money - which is to say, they don't make sense at all."
Read the full article here.
From Sky News:
Sam Bowman, the executive director of the Adam Smith Institute, said: "Despite consistent attacks on chief executive pay, the HPC has never told us how much they think CEOs are actually worth.
"Their complaints are the hand-waving of pub economics, not serious analysis ...Can the High Pay Centre tell us how much CEOs are worth? If not, how can they say that they are overpaid?
"Chief executives can be worth quite a lot to firms, as is shown by huge moves in company share prices when good CEOs are hired, or bad CEOs are fired."
He added: "The High Pay Commission’s complaints only make sense if you assume firms don’t actually care about making money – which is to say, they don’t make sense at all."