The Editor 

A tale of two turnarounds

John Hughman

A tale of two turnarounds

Soaring executive pay is something often bemoaned as a symptom of capitalism run wild. According to the Equality Trust’s Pay Tracker, the average FTSE 100 chief executive is paid £5.3m a year, while two-thirds of them earn more than 100 times the average UK salary. And all too often we see reward for failure – sometimes excessive reward may itself have even catalysed that failure; as Paul Jackson often discusses in our No Free Lunch column, perverse incentives can lead executives to manage businesses for themselves rather than, it seems, their shareholders. The vast sums doled out to executives at failed Thomas Cook offer an all-too-recent – and all-too-familiar – reminder of what an important issue executive pay is to investors. 

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