From the Pope to billionaires, people are beginning to reject today's popular CEO compensation formula as unjust. There is no reason other than greed to explain how one human's contribution can be worth more than the contribution of 1,000.
What would pay look like if pay packages emphasized investment in the real economy over short term profits that emanate from the non-productive activity that got us into trouble in the first place? Citi might be a great place to experiment.
It is about time that we took control of exploding executive pay. It is not just that the sums involved are unfair, and as history has shown, will only become more obscene. These executives control the allocation of resources that represent the well-being of the 99 percent.
As Wall Street continues to churn out big compensation and shareholders vote for more frequent opportunities to speak out, we can expect continued attention on the risky pay practices of big companies.
A recent academic study by Fahlenbrach & Stulz actually shows that on average the CEO's in the financial crisis did not take big gains while shareholders suffered losses. The median loss for a CEO was $5.1million.