The most obvious explanation for the bloated CEO pay in the U.S. is that we have a corrupt corporate governance structure. It is obvious what keeps a check on the pay of ordinary workers. Management works very hard to ensure they are not overpaying assembly line workers, retail clerks, or administrative assistants. But who works to ensure that the company is not overpaying the CEO?
In principle, that is supposed to be the job of the corporate board of directors. But for the most part, by their own account, reining in CEO pay does not even seem to be on their list of responsibilities.
-- Dean Baker, "The Big Three’s CEOs are Ripping Off Their Companies" (COUNTERPUNCH).
