Theodore
Maybe more folks with MBA’s is the answer?
I am one of those guys with a bunch of letters after my name. It certainly does help the salary. However, there is a simple fact that there are not a lot of people that can do what I do. I routinely have employees, customers, suppliers etc. comment on my work schedule, travel schedule, ability to manage a large staff and multiple businesses etc.
I too think some of the CEO pay is just plain stupid. But before we cast an eye totally on the dollar figure, look at the role and responsibility of the job too. Some of these CEO’s manage businesses large than half the countries on the globe.
From personal experience, when I first started out, debt management advice was decidedly regional. It was easy. Now it’s global. There are very few that are multicultural, multi lingual, and have an adaptive management style that is effective in the US, Mexico, France, China, and Australia. You also have to know tax codes, trade laws, global logistics, politics etc.
The job is much larger than it used to be, that’s all I’m really saying. I don’t think historical multiples apply. However, with more supply of management, the salaries will come down. However, we have a lot of folks retiring soon out of the management ranks, and a lot of folks with an entitlement mentality in the younger ranks. Don’t look for salaries to come down soon. In fact, it is likely to go the other way.