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Cozy relationships and ‘peer benchmarking’ send CEOs’ pay soaring

October 4, 2011 /

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A chief executive’s pay is more influenced by what his or her "peers" earn than by the company’s recent performance for shareholders.

The gap between what workers and top executives make helps explain why income inequality in the United States is reaching levels unseen since the Great Depression.

By Peter Whoriskey

Full Story: http://www.washingtonpost.com/business/economy/cozy-relationships-and-peer-benchmarking-send-ceos-pay-soaring/2011/09/22/gIQAgq8NJL_story.html

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