4 ms·
There's much more to it than that. Executive compensation doesn't correlate well to company performance. Companies are historically horrible determining what ma
by learc83 10y ago
There'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 10y 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.