"CEO pay is getting larger because the companies are getting larger"
Like Borders? The increase in pay doesn't appear to be based on anything sane.
Like Borders? The increase in pay doesn't appear to be based on anything sane.
Failure does not mean that salaries should necessarily be low. If you take the argument(s) above (1% profit increase is worth $100m to a $10b company), it applies equally to negative salaries. When you have such big companies, the best possible CEO is worth a lot (in dollar terms) more than the next best one.
I think correct question is are CEOs being selected for these sorts of reasons or are they being selected for other reasons. Is the system corrupt?
There is no such thing as "The Market", there are markets, all of which are composed of arbitrary rules created by people. They are all corruptible, and the question here is if ours is being corrupted and is in need of some systemic changes.
Not really. http://www.angrybearblog.com/2010/11/hausers-law-is-extremel...
"it is corrupted by government regulation"
It is corrupted by people. If we had no government it would still be corruptible.
"These are basic economic principles."
Like if I have a bigger gun than you, I get the rewards? Oh, you mean principles that we agree to in the form of government? Principles which are arbitrary and chosen by humans and vary from market to market! Yes, those "principles".