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CEO compensation

Summary:
According to Shue and Townsend most of the growth in CEO compensation has been based on options. Looking at the figure below I would say stocks have also played a role. This is all in a period in which the CEO to worker compensation ratio was already at very high levels by historical standards. And by the way, it is also very high by international standards. And you think a /hour wage is too high!

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Matias Vernengo writes CEO-to-worker pay ratios

According to Shue and Townsend most of the growth in CEO compensation has been based on options. Looking at the figure below I would say stocks have also played a role.
CEO compensation

This is all in a period in which the CEO to worker compensation ratio was already at very high levels by historical standards. And by the way, it is also very high by international standards.
CEO compensation

And you think a $15/hour wage is too high!
Matias Vernengo
Econ Prof at @BucknellU Co-editor of ROKE & Co-Editor in Chief of the New Palgrave Dictionary of Economics

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