CEO pay figures for 2019 are out, and again they beg the question of what should determine the big boss’s compensation?
Should the board of directors calculate a percentage of revenues? Or how about profits? Executives prefer a system based on parity with other CEOs at similar companies, regardless of corporate performance. Labor argues for a ratio set to the median employee’s pay.
The question has enormous implications, from aligning the executive’s interests with the company’s to protecting the health of the nation’s economy.