"Corporate executives receive millions in excess compensation because of rent-seeking. Many executives are mediocre at their jobs, yet receive extravagant pay packages, regardless of their performance. CEO pay increased by 14 times from the late 1970s to 2000, more than twice as fast as stock prices did, ....
CEOs in other countries earn half as much for doing the same job. And we manage to find qualified people to lead other complex organizations without paying them an average of $14 million a year: The president of the United States makes $450,000 a year, including expenses. The chairman of the Federal Reserve makes just under $200,000. The chairman of the Joint Chiefs of Staff makes about $250,000."
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