No The wage gap between workers and CEOs grows every year. Piling stock options upon multi-million dollar salaries does not encourage better performance and in many cases lowers the real value of the company. As CEO salaries have increased over the past decade, so have the performances of the companies they run.
Many corporations link CEO salary packages to the stock market through stock options.
When the value of the company's stock increases, the number of stock options for the CEO is increased. While high-tech CEOs enjoy some of the highest compensation packages around thanks to lucrative stock options, they also have the highest turnover rate, according to a new Forbes study. More than ever, these executives' fortunes rise and fall with the stock market and with major market fluctuations over the past year, some CEOs have lost millions. Proven business leaders increase shareholder value, so they should receive a sizable share of the wealth they create. As CEO salaries have increased over the past decade, so have the value of the companies they lead.