Excerpt from full text:
“…But does excessive pay CEO really matter? Yes, for several reasons. It’s often a red flag that board members are mere CEO lapdogs — not great news for investors who need boards to nudge top managers to perform for them. Second, excessive CEO pay can signal that a company has an “imperial CEO” and that it’s doing too little to groom its next leader, which makes for poor succession planning.
Big picture, there’s also the issue of whether widening pay gaps and the increasingly stratified class structure in the United States is eroding the historically egalitarian underpinnings of U.S. capitalism — and thus demoralizing the workforce.”