Executive Compensation: Is It Better to be Lucky Than Good
U.S. Air Force Academy Air Force Academy United States
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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.
- Personnel Management and Labor Relations