8 ms·
So management in general doesn't deserve more than $X? CEOs do much more than simply broker deals, and the rest is explained by basic market principles-good CEO
by nnfy 9y ago
So management in general doesn't deserve more than $X? CEOs do much more than simply broker deals, and the rest is explained by basic market principles-good CEOs are scarce, and therefore well compensated.
- learc83 9y agoThere's much more to it than that. Executive compensation doesn't correlate well to company performance. Companies are historically horrible determining what makes a good CEO. Other potential explanations for inflated CEO pay (relative to previous decades) include executive compensation boards staffed by executives in similar positions from other companies, and boards that want to keep up appearances by having a highly paid CEO.
- TheOtherHobbes 9y agoI think the latter is the real reason for insane comps. The logic seems to be: Rich CEO = successful company = investor opportunity No one cares about the shlubs doing the actual work. Indeed, a lot of the time no one cares about the actual work, or the long-term prospects of success.