A statistical model can't justify high salaries for executives, so it's not rational...so what?
The market has decided what an executive is worth and that's good enough for me. There is no better system. Markets can act irrational because it is the result of human behavior, which is often irrational.
Take all the irrationality out of humans and nothing of great achievement happens. No Eiffel Tower, Statue of Liberty, no Bugatti Veyron, no guys in squirrel suits flying down mountains....
Thanks, but I'll keep my free market with the penalty that some irrationality makes a few people here and there a little more wealthy than they deserve.
The market has decided what an executive is worth and that's good enough for me. There is no better system. Markets can act irrational because it is the result of human behavior, which is often irrational.
Take all the irrationality out of humans and nothing of great achievement happens. No Eiffel Tower, Statue of Liberty, no Bugatti Veyron, no guys in squirrel suits flying down mountains....
Thanks, but I'll keep my free market with the penalty that some irrationality makes a few people here and there a little more wealthy than they deserve.