Paraphrase the following passage. For good practice, please include the proper APA citation in your response.
"Scholars frequently argue whether the sharp rise in chief executive officer (CEO) pay in recent years is "efficient" or is a consequence of "rent extraction" because of the failure of corporate governance in individual firms. This article argues that governance failure must be conceptualized at the market rather than the firm level because excessive pay increases for even relatively few CEOs a year spread to other firms through the cognitively and rhetorically constructed compensation networks of "peer groups," which are used in the benchmarking process to negotiate the compensation of CEOs. Counterfactual simulation based on Standard and Poor's Execu-Comp data demonstrates that the effects of CEO "leapfrogging" potentially explain a considerable fraction of the overall upward movement of executive compensation since the early 1990s."
Thomas A Diprete, Gregory M. Eirich, Mathew Pittinsky. The American Jornal of Sociology.
This article argues that the sharp rise in CEO pay in recent years must be conceptualized at the market level instead of the firm level, ...
This solution is in response to a student's request for help paraphrasing. The article paraphrased is about the sharp rise in CEO pay in the last decade.