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How Much Inequality Is Fair?Mathematical Principles of a Moral, Optimal, and Stable Capitalist Society$
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Venkat Venkatasubramanian

Print publication date: 2017

Print ISBN-13: 9780231180726

Published to Columbia Scholarship Online: January 2019

DOI: 10.7312/columbia/9780231180726.001.0001

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What Is Fair Pay for Executives?

What Is Fair Pay for Executives?

(p.169) Chapter Seven What Is Fair Pay for Executives?
How Much Inequality Is Fair?

Venkat Venkatasubramanian

Columbia University Press

We compare our theory’s prediction regarding executive compensation. The theory’s predictions are in line with what Peter Drucker, J. P. Morgan, and Warren Buffet have argued as a fair CEO compensation with respect to an average employee, or what it used to be in 1950s-60s in the U.S. We offer guidelines for designing a more reasonable and fair pay distribution in large corporations.

Keywords:   Excessive CEO Pay, pay without performance, CEO pay ratio

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