Confessions of a researchaholic

July 20, 2021

CEO pay fairness

Filed under: Real — liyiwei @ 9:29 am

I think if you define fairness by “fair market value”, then C.E.O.s are paid fairly. I think if you define fairness by how you think society should value people, then I think C.E.O.s are paid too much. – Dara Khosrowshahi, the C.E.O. of Uber, in an interview.

If every new hire is paid an above average market value (as likely in the senior executive job market), that will lead to an exponentially higher growth of compensation than otherwise (e.g., the minimum wage job market).

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