Re:CEO compensation has grown 940% since 1978
by knodi123 on Thursday August 15, 2019 @02:59PM
(#20708472)
> This is sometimes called the Lake Wobegon effect.
Due to a humorous quote from Garrison Keillor's Prairie Home Companion show: "Well, that's the news from Lake Wobegon, where all the women are strong, all the men are good-looking, and all the children are above average."
Re:CEO compensation has grown 940% since 1978
by leetcrew on Thursday August 15, 2019 @02:24PM
(#20708125)
there's a third alternative: CEOs are currently priced by the market but were underpriced in 1978.
not sure I believe that, but it's a possibility.
Re:CEO compensation has grown 940% since 1978
by imtringued on Friday August 16, 2019 @10:15AM
(#20715350)
It is possible that we now have bigger companies that can afford to pay their CEOs more.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=966332
I'm not sure how true it is, but the game theory makes sense to me. The alternative, that CEOs are correctly priced by the market but that correct price has grown by 10x in half a century, actually seems less believable to me.