>their salaries end up inappropriate scaled into the stratosphere because the company's performance justifies increasing compensation to employees to retain them and sustain that performance.
You're looking at the compensation for CEOs at top firms. If a CEO does poorly then the company stops being a top firm and falls out of this consideration. Meanwhile every large company has good and bad average employees. Them doing poorly doesn't sink the company.
>Take an arbitrary dude off the street and give them the experience of a CEO and I bet you that substituting him in would at most lose the company 40% of growth/whatever.
And then you replace the rest of upper management in the same way and you won't have a company left. Also, 40% for these companies is a hell of a lot more than what these CEOs are paid.
You're looking at the compensation for CEOs at top firms. If a CEO does poorly then the company stops being a top firm and falls out of this consideration. Meanwhile every large company has good and bad average employees. Them doing poorly doesn't sink the company.
>Take an arbitrary dude off the street and give them the experience of a CEO and I bet you that substituting him in would at most lose the company 40% of growth/whatever.
And then you replace the rest of upper management in the same way and you won't have a company left. Also, 40% for these companies is a hell of a lot more than what these CEOs are paid.