There is much consternation about CEO salaries, but not as much clear thinking.
The argument that suggests that CEOs in public companies are "overpaid" is based on visibly very high salaries, and the ssumption that CEOs wield so much influence over boards and compensation committees, that they are able to "negotiate" overly generous compensations.
That assumption may or may not be true.
TO find out whether it is true is actually very easy. All one needs to do is compare CEO salaries in public companies, with CEO salaries in comparable non-public (privately owned) companies, where the owner is not the CEO. Presumably, the private owners who hire CEOs negotiate their salaries at "arm's length" and the private company CEO salary is a good indicator of what is fair.
Since I am unlikely to have come up with such a simple comparison idea first, some studies must have been done to this effect.
Is anyone aware of any such comparisons?i