Thread: CEO salaries
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Ignoramus14968 Ignoramus14968 is offline
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Default CEO salaries

There is much consternation about CEO salaries, but not as much clear
thinking.

The argument that suggests that CEOs in public companies are
"overpaid" is based on visibly very high salaries, and the ssumption
that CEOs wield so much influence over boards and compensation
committees, that they are able to "negotiate" overly generous
compensations.

That assumption may or may not be true.

TO find out whether it is true is actually very easy. All one needs to
do is compare CEO salaries in public companies, with CEO salaries in
comparable non-public (privately owned) companies, where the owner is
not the CEO. Presumably, the private owners who hire CEOs negotiate
their salaries at "arm's length" and the private company CEO salary is
a good indicator of what is fair.

Since I am unlikely to have come up with such a simple comparison idea
first, some studies must have been done to this effect.

Is anyone aware of any such comparisons?

i