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Are top executives paid enough? The answer is clear
Conflicting viewpoints exist on the need for high executive salaries and incentives. By and large, economists conclude from their studies that high remuneration is useful, while organizational behavior researchers conclude it is harmful. Some people attribute this to a different political outlook, economists being more conservative than those in organizational behavior....Examine the evidence in Jacquart, P. & Armstrong, J. S. (2013), “Are Top Executives Paid Enough? An Evidence-Based Review,” Interfaces, 43, pp. 580-589, followed by commentaries by leading scholars on this topic.
Five Principles of EBM
- Face the hard facts, and build a culture in which people
are encouraged to tell the truth, even if it is unpleasant.
- Be committed to "fact based" decision making -- which
means being committed to getting the best evidence and
using it to guide actions.
- Treat your organization as an unfinished prototype --
encourage experimentation and learning by doing.
- Look for the risks and drawbacks in what people recommend
-- even the best medicine has side effects.
- Avoid basing decisions on untested but strongly held beliefs,
what you have done in the past, or on uncritical "benchmarking"
of what winners do.