Do Changes in Wealth Inequality Help Explain CEO Compensation Inequality? A Study Using the Pareto Distribution

Over the past twenty years there has been a dramatic increase in both CEO pay and the wealth of the richest Americans. We hypothesize that the increase in CEO pay is due to the same economy-wide factors that have increased the asset value of the wealthiest Americans. We test this hypothesis by estimating Pareto distributions for both CEO compensation and the Forbes 400 list of the wealthiest Americans and then comparing the behavior of these distributions over time. We find that the Forbes 400 distribution changes little over time, while CEO compensation changes significantly. We find no evidence for the hypothesis that these two distributions move together

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Year of publication:	2012
Authors:	Blackwell, Calvin
Other Persons:	Graefe-Anderson, Rachel (contributor) ; Vaught, Dyanne (contributor)
Publisher:	[2012]: [S.l.] : SSRN
Subject:	Vermögensverteilung \| Wealth distribution \| Managervergütung \| Executive compensation \| Einkommensverteilung \| Income distribution \| Theorie \| Theory \| Soziale Ungleichheit \| Social inequality \| Lohnstruktur \| Wage structure

Extent:	1 Online-Ressource (13 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 10, 2012 erstellt
Other identifiers:	10.2139/ssrn.2144469 [DOI]
Classification:	M12 - Personnel Management ; M52 - Compensation and Compensation Methods and Their Effects (stock options, fringe benefits, incentives, family support programs) ; D31 - Personal Income, Wealth and Their Distributions
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013100914