A short but lively debate between right and left on executive pay. The Adam Smith Institute’s Sam Bowman and Professor Mariana Mazzucato of UCL argue over whether it has become excessive relative to the pay of the rest of the workforce.
The Adam Smith Institute is proudly neoliberal (formerly libertarian), while Mazzucato believes strongly in state industrial and technology policy, as well as in the benefits of ‘stakeholder capitalism‘ as opposed to shareholder capitalism.
The stakeholder approach aims to balance the interests of different groups affected by the operations of firms, from CEOs to trade unions and customers, via particular forms of corporate governance. The aim of such a framework is to achieve both greater efficiency and a more equitable society.