Executive pay: the high cost of market failure

When it comes to executive pay, the market is broken. The game, you might say, is rigged.

Chief executives and their assorted lobby groups are fond of saying “That’s the market” when it comes to defending the massive salaries. “Look at America,” they cry. “You have to pay top dollar to attract the best talent!”

Indeed, look at America. The Wall Street protests are now in their fourth week. And even though the protesters have struggled to identify, let alone voice a clear message, they know something is awry.

http://www.theage.com.au/business/executive-pay-the-high-cost-of-market-failure-20111010-1lh2o.html