Katherine Mangu-Ward Discusses CEO Pay on CNBC's Closing Bell

"The thing that makes me nervous is the idea that somehow there is a magic ratio between what the CEO earns and what the janitor earns and that government... can dictate it," says Katherine Mangu-Ward, Reason managing editor. Mangu-Ward discusses whether high CEO pay is ethical on CNBC's Closing Bell.

Airdate: September 12, 2013

About 6 minutes.

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  • Michael B.||

    I would argue that CEO's are generally paid above the market equilibrium wage because the owners of corporations, the shareholders, have most of their property rights stripped and their only recourse is to fire executives and nothing in between. This makes both the CEO pay and the rate at which they are fired/replaced artificially high. In other words a freer market would cause CEO's and other executives to have lower pay. The extra wealth would go to investors and reinvestment instead of higher employee pay, though.

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