The CEO Pay Gap: Consequences and Governance

This chapter examines the widening disparity between CEO compensation and average worker pay in the U.S., comparing it with trends in other countries. It discusses the negative repercussions of this inequality on employee morale, company investments, and societal health, while critiquing corporate governance practices that perpetuate excessive pay. Additionally, the chapter highlights the role of board members, shareholder activists, and the influence of gender and racial disparities in corporate leadership.