It is largely random, and heavily influenced by culture. E.g. CEOs in different countries make vastly different salaries yet don't have noticeable difference in performance or outcomes. CEO salaries has more to do with political ideology of a country than market realities. It is no coincidence that the country were people have the most unrelenting belief in the magic powers of the individual, America, also pays their CEOs the highest. Also no coincidence it happened after the 80s philosophy of "greed is good".
Research, logic, and reason simply doesn't support the myth of the CEO. But board members and CEOs themselves like to indulge in that myth.
Re:Ending the cult of the CEO
by michaelmrose on Tuesday April 25, 2017 @03:10AM
(#14191396)
"I would make the contention that it is up to the company and the board of the company to decide the compensation of any of it's employees, including the CEOs."
Is it any shock that a class of people value people in their own set over the people that actually do the work?
"Luck" has a lot to do with it, but it also has a lot to do with many other types of success that most people don't have problems with.