JTO: Paying CEOs too much is bad for business

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Paying CEOs too much is bad for business
By - 01-20-2010 04:11 PM
Originally Posted at: The Japan Times Online

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CAMBRIDGE, Mass. — There is now intense debate about how the pay levels of top executives compare with the compensation given to rank-and-file employees. But, while such comparisons are important, the distribution of pay among top executives also deserves close attention.
In our recent research, we studied the distribution of pay among top executives in publicly traded companies in the United States. Such firms must disclose publicly the compensation packages of their five highest-paid executives. Our analysis focused on the CEO "pay slice" — that is, the CEO's share of the aggregate compensation such firms award to their top five executives.



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The Japan Times Online
 

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