The self-styled and self- appointed alliance is not a detached think-tank but an energetic pressure group for lower taxes and a smaller public sector. The new list seems to be thoroughly researched. The problem is less the facts than the underlying assumptions, revealed in the comment by Matthew Elliott, the alliance’s chief executive, that: “Taxpayers will be shocked at the scale of these massive pay awards. Large numbers of people in the public sector are effectively being paid City salaries.”

Imagine if these comments had been made about pay in the private sector. Immediately, the complaint would go up from the alliance and its allies: “The politics of envy”. The report reflects the view that the public sector is inherently inferior to the private sector. You can believe that the privatisations of the 1980s and 1990s were desirable and still argue that some functions should remain in the public sector — and be run by high-quality, well-paid, executives.

There are some apparent oddities in the list, such as Bob Kiley’s generous package from his time as Transport for London commissioner, though that was, of course, decided by that notable champion of fat cats, Ken Livingstone. But, in most other cases, big salaries are being paid to the heads of very large organisations such as Royal Mail, British Nuclear Fuels, the BBC and parts of the health service. These do not appear outlandish by comparison with big private sector companies. The rich list includes salary, bonuses, incentive plans, benefits-in-kind and, in certain cases, pension contributions, though in the private sector share-incentive and similar schemes can provide substantial longer-term gains.

Take the media, where direct comparions can be made. The report highlights the £619,000 earned by Mark Thompson, Director-General of the BBC, and the total pay of more than £300,000 of seven other BBC executives, as well as the £550,000 of the two top Channel 4 executives. However, these figures are dwarfed by the £1.85 million and £1 million earned last year by Charles Allen, now retired, and by Henry Staunton, the top executives at ITV, and by the £2.23 million and £1.23 million received in total emoluments by James Murdoch and Jeremy Darroch at British Sky Broadcasting. These included approved bonus and pension schemes.

This is not an inherent argument against high private sector pay deals. Rather, it is wrong to argue that generally lower public sector packages are necessarily excessive. There is not a simple division between market forces (good) and public sector (bad). Despite the worthy reports of Cadbury, Greenbury and Hampel, these high salaries reflect the work of often incestuous remuneration committees in both sectors, rather than a truly open market, as applies, for example, to the pay of bricklayers or hotel workers. The market for top executives is imperfect in both the public and private sectors.

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