I read this headline title from Reuters and Yahoo news with Interest
Even CEOs think CEOs are overpaid
This Piece of news have a really revealing fact:- While most CEO felt that they are really doing a good job(50%) most of the employee or people working for them (38%) felt otherwise according to a survey by BNET.
The thing about paying some top executive top pay is that sometimes they will miss or even become clueless about situations and happenings that are crucial to the company survival.
Thus a "When things are good,Pay yourself more; When thing get bad, Pay yourself even more." philosophy might arise that will undermine the well being of the whole company.
In the same context, Other top executive(64%) also felt that CEO's are overcompensated
However from further investigation/searching :)
I read The original Bnet Blog, Financial Times I found that this finding have been around for quite a while I think since October.
And finally this is the one that I think makes the most sense is from NYTimes.com
The main point is an independent pay commission committee.
This from Wikipedia "Executive compensation"
An extract of the part that interest me
In Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs, Harvard Business School professor Rakesh Khurana documents the problem of excessive CEO compensation, showing that the return on investment from these pay packages is very poor compared to other outlays of corporate resources.
other link for the book, 1 ,2
The next link is also from Bnet there seem to be a CEO succession crisis.
