There are several possible triggers. A popular hypothesis is that in the early 1990s, the SEC began requiring the disclosure and reporting of executive compensa

There are several possible triggers. A popular hypothesis is that in the early 1990s, the SEC began requiring the disclosure and reporting of executive compensation. The prevailing theory was that it would shine some light on the discrepancies between executive and normal workers' pay and force executive compensation down through public shaming. Instead, it did the opposite: executives started comparing their own salaries, and shopping around for the best compensation. Boards, on the other hand, started increasing executive compensation to make it look like they were recruiting only top most valuable talent. It became a positive feedback status-based market for executive compensation.