Corporate Skew

http://economistsview.typepad.com/economistsview/2011/03/are-ceos-overpaid.html#tpe-action-resize-392

the problem with a self-mandated (as opposed to electorally (re)mandated one like most modern Govs) system [and I see widely held public listed companies as practically self-mandated since I do not believe there is any real thing called Shareholder Democracy in actual operation] is that its feudalism has little scope of correcting, it just gets worse. We get left with little choice but to accept the payouts to the Executive and the facilitator layers, disproprtionate to their value add (another problem is how to even quantify that value add). So a practical view needs to be taken, some legal thumb rules to be imposed (agreed that its easier said than effectively achieved). The thing is, the Wall Street run system has given Capital Appreciation as a substitute for dividends for shareholders, but the salary curve skewing within the Org, beyond a point, helps! kill aggregate demand in the economy, and unless you can legally contain the skew OR have a reckless credit bubble to counter it, the economy, and number of people able to particpate, shrinks.