CEO Pay: How Much Is Too Much?
Episode Description
CEO compensation at large U.S. corporations jumped 11% to $9.3 million on average last fiscal year, according to a new study sponsored by The Wall Street Journal. Some executives received stand-out amounts. Philippe Dauman of Viacom, for instance, earned $84 million in the latest fiscal year, double the year-earlier figure. So, is the era of outsized CEO pay back? Martin J. Conyon, a senior fellow at Wharton's Center for Human Resources considers this and related questions in this Knowledge@Wharton video interview.
Brief Summary
Martin Kan discusses the rise in CEO pay and its correlation with corporate performance and implications of the Dodd-Frank Act.
Key points
- CEO Pay Increases. CEOs at major US companies saw an average pay jump of 11% this year.
- Dodd-Frank Act Impact. The Dodd-Frank Act will increase transparency in executive compensation.
- Employee Morale and CEO Pay. High CEO compensation can motivate or demotivate employees depending on the context.
Ask about Knowledge at Wharton
Episode highlights
- CEO Pay IncreasesCEOs at major US companies saw an average pay jump of 11% this year.“CEOs saw their pay jump on average about 11%!”0:25May 11, 2011
- Dodd-Frank Act ImpactThe Dodd-Frank Act will increase transparency in executive compensation.“More transparency and disclosure of executive compensation is coming!”2:44May 11, 2011
- Employee Morale and CEO PayHigh CEO compensation can motivate or demotivate employees depending on the context.“High levels of compensation can be a goal or a demotivator for employees.”8:34May 11, 2011
Tension
40/ 100Low tension
