This is true, but the overall reason CEO pay has ballooned is a dramatic cultural shift in Corporate America during 1980s towards stock options/grants for execu

This is true, but the overall reason CEO pay has ballooned is a dramatic cultural shift in Corporate America during 1980s towards stock options/grants for executives. Meanwhile corporate earnings have not grown 940% faster than they did in the 80s. Funny story, for a while, corporate America actually believed that equity pay was "free" and didn't realize that shareholders were paying for it. The reason worker pay hasn't kept up has a lot to do with simple stock market compounding. The stock market goes up 9.8% a year on average--regardless of executive skill. Even if worker salaries keep pace with inflation (which they don't), they would only go up 2-3% per year. Further reading, this article from II: https://www.institutionalinvestor.com/article/b1db3jy3201d38/The-MBA-Myth-and-the-Cult-of-the-CEO https://www.institutionalinvestor.com/article/b1db3jy3201d38... Also, highly recommend this newsletter: https://eomail1.com/preview?p=d9e18eae-6673-11e9-9307-06b4694bee2a&pt=campaign&t=1556101007&s=fad440ca5338bc1a92a229534c3562917c431f245224f98024e530365a4868e5 https://eomail1.com/preview?p=d9e18eae-6673-11e9-9307-06b469... This planet money episode: https://www.npr.org/sections/money/2018/06/22/622646316/episode-682-when-ceo-pay-exploded https://www.npr.org/sections/money/2018/06/22/622646316/epis...