Why do corporate executives make so much?
The thing is that the executives of big public companies really answer to no one. Sure there is a board of directors but they are usually on the board and they are the ones to pick the new board members should one resign. Stockholders are just investors and are not involved with the operations of the company. They rely 100% on the management of the company. If some stockholder does not like something about the operations of the company he has only one choice and that is to sell his shares. No one shareholder usually owns more than a small fraction of 1% of the stock so his vote in elections means nothing. So ultimately the management draws up their own compensation plans and they are not shy about over paying themselves. As long as profits are satisfactory every one keeps their mouth shut.
