Response to Comment on CEO compensation

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  • Allan Cohen

    Well, I misspoke. The NY Times last Sunday in its special section on executive compensation said that CEO pay in large companies is 179 times the bottom. Even worse.
    Your argument is not compelling, becuse there is evidence that CEOs are motivated more by power and impact than by compensation, and do not choose whether to try to grow because of higher pay. They do notice pay, since it is an easy way to keep score, but not as a direct motivator.
    If all executives could make no more than, say 2.5 million Euros, they would still be able to live (and save) comfortably -- and would be less likely to cause resentment and cynicism in the work force.