True, their salaries are set by the Board, though most of the time the actual dollar amounts are small. It is the stock options that are outrageous, mostly because it incentivises the people in charge to do what they have to do (both within and without the law) to keep the stock prices high (i.e. Enron). Of course, as a shareholder, you want that. But as an employee, you might not, because what is good for the stock might not be good for your job security. It's a tough balance for a CEO to strike. Or maybe not, with a $400 million golden parachute.

Of couse Ben is right with the theory behind his comments. Unfortunately, this is a political problem more than one of economics. Doing the right thing might be very unpopular, and I think our elected representatives in both parties care more about keeping their jobs than fixing the problem. However, I certainly hope that I am wrong.

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-'13 E93 M3 Cab, Interlagos Blue, Carbon Black leather, DCT, all options, and fun, endless fun!
-'13 X5 35i M-Sport, Carbon Black & Cinnamon, Dinan Stage 2!
-'15 Toyota Sienna Limited Premium AWD, Silver & Grey, Nav & BluRay, and less lame than the 2011 it replaced
-'07 Mini Cab S, Laser Blue, 6sp, endless fun that ended (sold)
-'04 X5 4.4i, loaded, loved, modded and sold