How to Fix Oversize Executive Compensation

From the mid-1970s until at least the mid-2000s, the earnings of American workers did not keep pace with U.S. productivity growth. The earnings of corporate executives, however, increased dramatically. The total annual incentive compensation, not including base salaries, of the top five executives of U.S. public companies increased from $4.9 billion in 1992 to $29.3 billion in 2006.

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