LETTER: Government has no business in executive pay debate

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In a country with an unemployment rate of more than 42%, surely the government should remove as many barriers to activity as possible?

. It is a matter for shareholders to decide what they expect from executives and, based on relevant performance, what their compensation should be.

Consumers “vote” with their purchases: if they decide a given company’s CEO is paid “too much”, or behaves or comments on matters in a manner with which they disagree, they will respond accordingly and change their spending behaviour. No matter the accumulated knowledge and feeling of moral righteousness on the part of bureaucrats, trying to centrally plan an economy — and millions of people’s daily economic decisions — is a recipe for mass unemployment, poverty, immovable inequality and no real societal progress.

Dealing with onerous state interference, demands and unnecessary legislation takes away from the time and resources that could be devoted to growing a business and possibly employing more people. In a country with an unemployment rate of more than 42% , surely the government should be removing as many barriers to activity as possible?

 

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