That is the stated narrative: that it's hard to hire CEOs who are good, and we need to give them every dollar we can. But there's a darker, and (IMHO) more acc

That is the stated narrative: that it's hard to hire CEOs who are good, and we need to give them every dollar we can. But there's a darker, and (IMHO) more accurate narrative: corruption or nepotism. Company A's CEO serves on the boards of companies B and C; and company B's CEO serves on the boards of A & C; and C's CEO on A & B. When the time comes, CEO_A votes for a big raise for CEO_B (and so does CEO_C). Now, when their turns come, they point to CEO_B and say: "look, the market is valuing CEOs so much! You've got to do something!". And CEO_B and CEO_C express outrage and vote to give CEO_A a huge raise. And the cycle repeats. Of course the connections are not as direct, but the club is a very exclusive club, and they all know how the game is played.