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When CEO pay exploded (update)

22 min episode · 2 min read

Episode

22 min

Read time

2 min

Topics

Leadership

AI-Generated Summary

Key Takeaways

  • What caused CEO pay to skyrocket in the mid-1990s?
  • How did Clinton's tax policy backfire on executive compensation?
  • Why did companies think stock options were "free"?

What It Covers

How CEO compensation exploded from $4 million to $19 million between 1992-2000 due to Clinton-era tax policy promoting stock options over salary.

Key Questions Answered

  • What caused CEO pay to skyrocket in the mid-1990s?
  • How did Clinton's tax policy backfire on executive compensation?
  • Why did companies think stock options were "free"?

Notable Moment

Compensation consultant Don Delves describes delivering a hundred-page report to shocked board members who kept saying "oh, holy" at each page revealing executive overpayment.

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