How Companies Actually Decide What to Pay CEOs – The Atlantic

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– Steven Clifford

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In 2014, 500 of the highest-paid senior executives at U.S. companies made nearly 1,000 times as much money as the average American worker, after taking into account salary, bonuses, and stock-based compensation. That discrepancy is so enormous that it prompts a question: How exactly do companies come up with and calibrate the often-colossal pay packages they give to their leaders? Through the 1970s—when the ratio of CEOs’ pay to that of the average worker was much lower, at somewhere between 20.  show all text

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