Reply #31: Can someone explain why that happens?

[aint_no_life_nowhere]

I've never been to business school or worked for a corporation. Wouldn't it be in the best interest of the shareholders and the Board to try to keep even the CEO's salary as low as possible so as to maximize profits? Are these large salaries really justified by the arcane expertise that these CEOs possess in downsizing corporations? Is it true that high CEO salaries are necessary in order to keep accomplished managerial talent from being lured away? Are these CEOs doing things that are as extraordinary in their field as a top NBA superstar does compared to the thousands of other basketball wannabes, or a top Hollywood actor compared to the tens of thousands of out of work actors? It seems to me that I read somewhere that many top CEOs make giant bonuses and salaries regardless of performance or the financial health of the company.