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Government Regulated CEO Pay?

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Should CEO pay be regulated by the government? Why or why not. If so, how?

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Whether CEO pay should be regulated by the government:

No, CEO pay should not be regulated by the government. Though CEO pay has been rising over the past decades, and in the U.S. CEO compensation ranges between 200 to 475 times that of the average workers compensation (Knowledge@Wharton, 2010), regulating this run away rate by the government is not the way to go. This is because some of the legislative measures such as Schumer's bill requiring shareholders right to have a member on company boards may turn out to be but vehicles for ceding enormous power to some of a few special interest investors. Such an instance would turn boards of companies into political bodies thereby threatening their ability to function. Research shows that years of well meaning attempts to keep the executives pay on the check through legislation, regulations and shareholder pressure have basically been ...

Solution Summary

The solution decides whether or not CEO pay should be government-regulated and describes why this is so. The response is 487 words in length and includes 3 references.