Executive Compensation: Is It Better to be Lucky Than Good

Abstract

Why, exactly, are executives paid so much? Executive compensation has for years sparked interest from main street (citizens) to Wall Street (shareholders) to Capitol Hill (legislators) to Harvard Square (academia). Assertions of overpayment, fair payment, and more rarely, underpayment, abound. This is because executive compensation represents a significant financial commitment. Not only that, but compared to rank-and-file positions, executive compensation is tremendous. Take 2012 as an example. While the median annual wage for U.S. workers hovered around $40,000 per year, median CEO pay was nearly 250 times that - almost $10 million. And although average worker pay has barely increased for years, CEO pay is on the rise again following the recession that began in 2008.

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Document Details

Document Type
Technical Report
Publication Date
Jul 30, 2013
Accession Number
AD1042363

Entities

People

  • Brian C. Payne
  • John A. Martin

Organizations

  • United States Air Force Academy

Tags

Communities of Interest

  • Energy and Power Technologies

DTIC Thesaurus Topics

  • Air Force
  • Clearances
  • Compensation
  • Employment
  • Executives
  • Labor
  • Labor Markets
  • Personnel Management
  • Security
  • Standards
  • Statistical Analysis
  • United States
  • United States Air Force Academy
  • Universities

Readers

  • Economics
  • Government Contracting/Procurement.
  • Military History of the United States in the 20th Century.