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[hairyears]

I've read recent blogs and socially-minded op-ed pieces about equality, fairness, income gaps and they seem to be voicing an increasingly-popular criticism of our economic system: winner takes all.

This has been known to economists for a quarter of a century, as Tournament Theory. I would urge you all to read the second reference on that

Comments

[katsmeat]

In a Radio 4 thing on executive pay, some commentator offered an additional reason for it. You're probably in a better position than I to comment on the notion...

Altough the fat-cat CEO's grotesque pay is generally bad PR, it counts very well with the audience that matters - the markets. Who seem to assume that above-average pay implies the CEO is an above-average business leader.

Companies know this. If they've just appointed somebody adequate but unexceptional as a CEO, they'll bury the individual under a pile of gold, regardless of their abilities in order to impress the financial world with the persons worth.