Description: With increasing shareholder discontent towards lavish executive pay, one would assume that high executive pay will be curbed. However, the opposite seems true. In the U.S. C.E.O. pay has risen on average 12 percent annually.

Source: New York Times
Date: May 16, 2015
Video Link: http://www.nytimes.com/2015/05/17/business/shareholders-votes-have-done-little-to-curb-lavish-executive-pay.html?ref=business&_r=0

Questions for Discussion:

• Why has executive pay continued to rise substantially despite greater shareholder involvement?
• What else can company boards do to curb lavish increase in executive pay?
• Are such high CEO pay justified? Give reasons.