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Economic Commentary

Fear and Loathing in Executive Pay

For some reason, people take offense when a corporate executive begins to make as much money as a basketball star or swimsuit model. Though at first glance some might see this as another example of the ill-informed anti-business bias of the American public and media, the disgruntlement in fact arises from a serious concern: the connection between executive pay and company performance.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Haubrich, Joseph G. 1994. “Fear and Loathing in Executive Pay.” Federal Reserve Bank of Cleveland, Economic Commentary 11/1/1994.