The two significant issues regarding the ceo pay debate are -
a) the relationship between firm performance and CEO pay
b) the size of the CEO compensation in relation to average employee pay
Chief Executive Officers (CEOs) often receive large sums of money in the form of salaries and bonuses from commercial companies. This is sometimes defended by a peer-to-peer argument; roughly "our" CEO will be paid what other CEOs of comparable companies receive.
On the face of it, this seems like a bad excuse for morally outrageous compensation schemes, and thus this argument has been overlooked in the philosophical literature in the past. In contrast, however, this article provides a defense of the peer-to-peer argument. In addition, it is shown how rigorous examination of this argument sheds light on incentive-based and desert-based theories of fair wages.
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