We observe that CEO compensation and top incomes in the US have both been increasing rapidly over the last thirty years. We hypothesize that the trends in CEO compensation have been caused by the same economy-wide factors that have contributed to increases in income. We test this hypothesis by...

I develop measures of firm-level pay disparity and examine their relation to firm performance. Using comprehensive compensation data for a large sample of firms, I find no statistically significant relation between the ratio of CEO-to-mean employee compensation and performance. I next create...

Purpose: The main aim of this study is to empirically investigate the relationship between executive compensation, inequality, and corporate governance, thus filling a gap in extant literature. Design/methodology/approach: The methodology used calculated the salary Gini (s-Gini) and governance...