Corporate CEO Pay: Why So High? What's Special About Them vis a vis Ordinary Workers?

[ruddy]

There is this whole notion of skill set, supply/demand, experience etc. The CEO tier compensation for major corporations-specifically US-sounds just obscene. I am no economist but it doesn't take one to C the irony. I hear about 'career being their life', high stress, perenially wired(at work all time), etc. Still I nonetheless see absolutely why they are paid in the order of hundreds(more than 300 times ordinary workers-some of who work as hard if not harder). Then there is the 'if he produces results' it's worth it. I find it to be a little more of high level graft whereby those who call the shots(CEO and executive boards or whatever) simply collude to benefit themselves with 0 concern for those without equivalent leverage.
I suspect that might be one of the unraveling collapsing structure(Pure Capitalism). As people get more aware of the disparities the lesser the likelihood the obscenity gets perpetuated. Ur take???

[denys]

"Ordinary workers" are getting the operational work done. The CEO give directions, determines the strategy which is now broken down to operational activities to which the "ordinary workers" do. They are being paid for their experience in the field (they have paid the price over time). Their ability to see what "ordinary worker" wont ordinarily see(Vision). But remember just as the rewards are High, the expectations of the Board of Directors too are high with regards to their performance.
This means there is a high risk.

Remember the "higher the risk the higher the potential rewards"

[christos]

The "market" creates the salary for CEO's. Moreover, the "market" is always correct because it is the "market". Stockholders want to create income. Sometimes having a good CEO can create this income. Some CEO's are great innovators and/or businessmen that cannot be duplicated (i.e Steve Jobs and Warren Buffett) and single handedly create the market. That is why you see stocks tank sometimes after a great CEO dies or steps down for whatever reason. Are some CEO's overpaid? Most definitely, but that is why those CEO's also have a short shelf life after the expected income they were estimated to generate was not met. There are actual accountants in companies whose only job is to figure out compensation for officers....