Benchmarking Inflates CEO's Salaries
CEO pay has soared in the last decade and many companies are not upfront about how they go about calculating executive salaries. Part of the reason for this is the use of benchmarking-- pay based on what the highest earners in your industry earn. However greater scrutiny and regulation of compensation committees is expected to moderate CEO pay.
See "Benchmarking Inflates CEO's Salaries", The New York Times, March 28, 2005