As a general rule, the larger the corporation the larger the CEO compensation package. By 2006 CEOs made 400 times more than average workers-a gap 20 times bigger than it was in 1965. Between 19, Mutual Fund founder John Bogle estimates total CEO compensation grew 8.5 per cent/year compared to corporate profit growth of 2.9 per cent/year and per capita income growth of 3.1 per cent.

has outpaced corporate profits, economic growth and the average compensation of all workers. Since the 1990s, CEO compensation in the U.S. 9.1.4 More direct government intervention.7.1.3 'Pay for performance' theory problems.3.4.1 Pensions and deferred compensation.3.4 Severance/buyout/retirement compensation.'The most basic differences between the two types of businesses include the lack of publicly traded stock as a compensation vehicle and the absence of public shareholders as stakeholders in private firms.' The compensation of senior executives at publicly traded companies is also subject to certain regulatory requirements, such as public disclosures to the U.S. The compensation awarded to executives of publicly-traded companies differs from that awarded to executives of privately held companies. It has often had surprising amounts of deferred compensation and pension payments, and unique features such as executive loans (now banned), and post-retirement benefits, and guaranteed consulting fees. The compensation is typically a mixture of salary, bonuses, equity compensation (stock options, etc.), benefits, and perquisites. This 'problem' may interfere with the ideal of management pay set by 'arm's length' negotiation between the executive attempting to get the best possible deal for him/her self, and the board of directors seeking a deal that best serves the shareholders, rewarding executive performance without costing too much. This separation of those who run a company from those who directly benefit from its earnings, create what economists call a ' principal-agent problem', where upper-management (the 'agent') has different interests, and considerably more information to pursue those interests, than shareholders (the 'principals'). Most of the private sector economy in the United States is made up of such firms where management and ownership are separate, and there are no controlling shareholders. While an executive may be any corporate ' officer'-including the president, vice president, or other upper-level managers-in any company, the source of most comment and controversy is the pay of chief executive officers (CEOs) (and to a lesser extent the other top-five highest-paid executives ) of large publicly traded firms. Federal laws and Securities and Exchange Commission (SEC) regulations have been developed on compensation for top senior executives in the last few decades, including a $1 million limit on the tax deductibility of compensation not 'performance-based', and a requirement to include the dollar value of compensation in a standardized form in annual public filings of the corporation. Observers differ as to how much of the rise and nature of this compensation is a natural result of competition for scarce business talent benefiting stockholder value, and how much is the work of manipulation and self-dealing by management unrelated to supply, demand, or reward for performance. It has been criticized not only as excessive but also for 'rewarding failure' -including massive drops in stock price, and much of the national growth in income inequality. It is the highest in the world in both absolute terms and relative to the median salary in the US. The typical worker's annual compensation grew just 11.9% within the same period. In 2018, the average CEO's compensation from the top 350 US firms was $17.2 million. The top CEO's compensation increased by 940.3% from 1978 to 2018 in the US. This has received a wide range of criticism leveled against it. Within the last 30 years, executive compensation or pay has risen dramatically beyond what can be explained by changes in firm size, performance, and industry classification.

In the United States, the compensation of company executives is distinguished by the forms it takes and its dramatic rise over the past three decades. Based on data from Wall Street Journal/Mercer, Hay Group 2010. Ratio of the average compensation of CEOs from the top 350 firms and production workers, 1965вЂ“2009.

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