Thursday, October 30, 2003

You really need to see the chart Kevin (Calpundit) Drum found in an Economist article. It shows CEO pay per dollar of company profit over the years. Kevin says:

As the chart shows, during the 80s CEO pay nearly doubled for a given level of corporate profitability, and during the 90s it increased again almost 4x. Overall, a CEO who generates $10 million in net profits today is paid about 7x what a CEO who generated exactly the same amount was paid in 1980.

As he says of CEO pay, "it's not based on performance in any defensible way." Damn straight.

No comments: