Worth Every Penny
Chief executive pay went up by more than 500 percent, on average, from 1980 to 2003, but so did the value of the top 1,000 firms.
The source: “Why Has CEO Pay Increased So Much?” by Xavier Gabaix and Augustin Landier, in The Quarterly Journal of Economics, Feb. 2008.
The sixfold rise in pay for America’s top executives over the past quarter-century has brought an outcry from populists. But economists Xavier Gabaix and Augustin Landier of New York University argue...