The issue of upper-level executive pay can raise the ire of many, as it might be hard to comprehend salary and benefits in the tens or hundreds of millions. It’s especially easy to rile up the masses if one compares CEO pay to the average pay of production workers. Of course, this exercise in demonstrating disparity can easily make one believe that executive pay and perks are excessive.
For some it’s a matter of equity between upper management and front-line employees. For others, such high pay must somehow be related to fraud and irregularities. But are these valid concerns? Shouldn’t the market decide? Who are journalists and economists to say that upper level executives shouldn’t be highly compensated?
Rules on Executive Pay
The Securities and Exchange Commission changed the rules regarding executive pay in 2006, which should lead to greater disclosure of information by public companies. The rules do not limit executive pay in any way; they just require certain disclosures to be made.