Tag: CEO Pay
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Stop Obsessing Over Exorbitant CEO Pay
Slate: Stop Obsessing Over Exorbitant CEO Pay It’s grotesque, but income inequality isn’t as harmful as we think. … … But as New York Times economics writer Eduardo Porter noted recently, claiming that wealth inequality is unambiguously harmful is more about ideology than evidence. He cites the struggles of Harvard scholar Christopher Jencks, a leading…
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CEO-to-Worker Compensation Ratio – 1965-2011
HT: Greg Mankiw
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Top Paid CEOs
Forbes: Top Paid CEOs After a 38% collective pay raise in 2006, chief executives of the 500 biggest companies in the U.S. (as measured by a composite ranking of sales, profits, assets and market value) took a pay cut of 15% last year. The last time the big bosses took a pay hit was in…
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MEC: Solutions
Chapter 30 in Everything Must Change is titled "Organized Religions or Religion Organizing the Common Good?" He identifies seven categories of development economics. Summarizing: Trade First, we have to live within environmental limits. Second, integrate free trade with fair trade. Third, we need to make it easier for people to grow small businesses. This will…
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AmEx gets CEO pay right
Fortune: AmEx gets CEO pay right With its new incentive plan for Ken Chenault, the card giant has created a better model for executive comp. Through a rare alignment of the planets, the subject of CEO pay may get extremely hot in a few months. If it does, I'd advise four key groups – CEOs,…
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A better way to pay CEOs
Christian Science Monitor: A better way to pay CEOs … No, I'm not calling for limits on CEO pay. Capitalism thrives on incentives, and compensation ceilings distort those incentives. But there is a better way to pay CEOs, by using incentives to refocus them on building longer-term, sustainable company value. … ……. Since the mid-1990s,…
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Gabaix on CEO Pay
Greg Mankiw: Gabaix on CEO Pay Greg Mankiw has a post about economist Xavier Gabaix. He shows the following chart from the Wall Street Journal: Mankiw quotes Gabaix: The sixfold increase of CEO pay between 1980 and 2003 can be fully attributed to the six-fold increase in market capitalization of large US companies during that…
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The politics of pay
The Economist: The politics of pay The rewards of America's company bosses face yet more scrutiny and attack. NOW there is nowhere for the bosses of corporate America to hide their bulging pay packets. In spite of years of defensive lobbying, they are having to reveal all under new Securities and Exchange Commission (SEC) rules…
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Evaluating CEO Pay
From Greg Mankiw: Gabaix on CEO Pay In Xavier's view, CEO's are earning the value of their marginal product. Top CEOs are paid high salaries because they are directing the fortunes of large enterprises, and even a small amount of extra talent is worth a lot. Some people on the left have suggested that high…