Managerial Economics and Organizational Behavior: Are US CEO's overpaid?

1. Do you think the fact that most American CEOs are paid so much more than rank-and-file employees suggests CEOs are overpaid? Explain.

2. Japanese CEOs generally receive much lower levels of compensation than CEOs in the United States. Does this imply that U.S. CEOs are overpaid?

3. Is it obvious that $3.25 per thousand is too low incentive pay for CEOs? Explain.

4. Does the observation that the stock price increases when firm s increase incentive pay for CEOs suggest that most CEOs do not receive enough incentive compensation? Explain.