Accession Number:

AD1042363

Title:

Executive Compensation: Is It Better to be Lucky Than Good

Descriptive Note:

Technical Report

Corporate Author:

U.S. Air Force Academy Air Force Academy United States

Personal Author(s):

Report Date:

2013-07-30

Pagination or Media Count:

8.0

Abstract:

Why, exactly, are executives paid so much Executive compensation has for years sparked interest from main street citizens to Wall Street shareholders to Capitol Hill legislators to Harvard Square academia. Assertions of overpayment, fair payment, and more rarely, underpayment, abound. This is because executive compensation represents a significant financial commitment. Not only that, but compared to rank-and-file positions, executive compensation is tremendous. Take 2012 as an example. While the median annual wage for U.S. workers hovered around 40,000 per year, median CEO pay was nearly 250 times that - almost 10 million. And although average worker pay has barely increased for years, CEO pay is on the rise again following the recession that began in 2008.

Subject Categories:

  • Personnel Management and Labor Relations

Distribution Statement:

APPROVED FOR PUBLIC RELEASE