Executive pay has been on a steady rise over recent years due to several interconnected factors. One significant reason is the close relationships often found within corporate boards, which can lead to decisions that favor higher compensation for executives rather than what might be best for shareholders or employees. Additionally, changing societal norms and expectations around income have also contributed to this trend.
Beyond these specific dynamics, broader economic trends such as increased business scale, heightened competition, and advancements in technology and innovation play crucial roles in justifying executive pay hikes. As companies grow larger and face stiffer competition, executives are often tasked with more complex challenges that require sophisticated problem-solving skills and strategic thinking. This complexity can justify higher salaries to attract and retain top talent. Moreover, the pace of technological change demands leaders who not only understand but also drive innovation within their organizations, further adding value and potentially necessitating higher compensation.
Chrystia Freeland is a distinguished Canadian journalist and author with extensive experience in economics and international affairs. She has held influential positions such as Deputy Prime Minister and Minister of Finance in the Government of Canada, showcasing her deep understanding of economic policies and corporate governance. Her insights into executive pay reflect her broad knowledge base and practical experiences within both journalism and government roles.
