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Mythbuster: Are huge executive pay packages really vital to UK competitiveness?

As part of the New Economics Foundation's 'mythbuster' series, Luke Hildyard debunks the myths used to justify excessive executive pay

We’re encouraged to believe that company executives are talented wealth creators, worthy of extreme pay packages which supposedly drive them to work hard to the benefit of society.

As part of the New Economics Foundation's mythbuster series, Luke Hildyard analyses the arguments put forward to justify the shocking growth in executive pay packages over the past thirty years, finding that there is little evidence to support them:

The fact that these myths have been allowed to take hold has greatly exacerbated levels of socially-divisive inequality in the UK, while the increased share of the national income captured by the richest 0.1% diverts wealth from low and middle-income households. 

(This paper was published as part of the New Economics Foundation mythbuster series. To see the full series, visit the NEF website)

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Posted on 22 July 2013

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