CEO Pay in Protective Bubble
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (TheStreet) -- A CEO makes more in a day than a worker makes in a year. In 2010, the average private sector worker received a 0.5% raise; the average large-company CEO had a 28.5% raise. The average annual compensation tallies in 2010 were $11.4 million vs. $33,800.
CEO-to-worker compensation has risen from 40:1 in 1980 to 337:1. When is this bubble going to burst?
That's wishful thinking. CEO compensation is now performance based and CEOs in 2010 presided over some healthy stock appreciation. They are ostensibly being rewarded for meeting their charter of maximizing shareholder value.
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