Executive compensation is a big deal. CEO compensation has not only recovered to pre-recession levels - it has surpassed it. That stings more than normal, though, given that average worker wages have been stagnant.
Looking at the apparent lack of economic sensitivity and actual performance to CEO pay, as well as the seemingly unbreakable upward trend, it seems as though CEOs are increasingly paid like star athletes. Leaving aside the question of whether star athletes deserve the money they get, it is well worth exploring whether CEOs should really be in the same group as these star athletes. (For related reading, see A Guide To CEO Compensation.)
Are CEOs Like Athletes?
Star athletes generally have exceptionally rare skills that are honed over a lifetime of practice. Ultimately it is the rarity of that skill that drives the demand and value of their services. People grousing over the incredible salaries paid to athletes often comment that "anybody" could get together and play a game of football or baseball. While that's true, what they fail to realize is that nobody is going to pay $100 or even $10 to watch "anybody" play a game.
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http://financialedge.investopedia.com/financial-edge/0611/Should-CEOs-Be-Paid-Like-Star-Athletes.aspx
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