On average, over 80% of a CEO’s pay is connected to stock price, and thus, if the company does well, the CEO gets rewarded handsomely. In addition, some entrepreneur CEOs risk their family’s livelihood and invest all their personal savings to start a company. They work twice as many hours a week as most American workers, and they provide motivation for new entrants into the market that there can be a major payoff. But is this payoff too high? Are American CEOs paid too much? Why, or why not?
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