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	<title>The Harvard Law School Forum on Corporate Governance</title>
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	<title>Are CEOs of U.S. Public Companies Really Overpaid? &#8211; The Harvard Law School Forum on Corporate Governance</title>
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		<title>Are CEOs of U.S. Public Companies Really Overpaid?</title>
		<link>https://corpgov.law.harvard.edu/2007/01/09/are-ceos-of-us-public-companies-really-overpaid/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=are-ceos-of-us-public-companies-really-overpaid</link>
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		<pubDate>Tue, 09 Jan 2007 22:51:04 +0000</pubDate>
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				<category><![CDATA[Boards of Directors]]></category>
		<category><![CDATA[Executive Compensation]]></category>
		<category><![CDATA[Op-Eds & Opinions]]></category>
		<category><![CDATA[Private Equity]]></category>
		<category><![CDATA[Private equity]]></category>

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		<description><![CDATA[Editor’s Note: This post is by Steven Kaplan of the University of Chicago I was shocked (but encouraged) to read the New York Times yesterday. Instead of writing another article about how CEOs are massively overpaid, dishonest, or both, Andrew Sorkin and Eric Dash make a strong argument that U.S. CEOs are underpaid! According to the [&#8230;]]]></description>
				<content:encoded><![CDATA[<div style="background:#F8F8F8;padding:10px;margin-top:10px;margin-bottom:10px"><strong>Editor’s Note:</strong> This post is by Steven Kaplan of the University of Chicago</div>
<p>I was shocked (but encouraged) to read the <a href="http://www.nytimes.com/">New York Times</a> yesterday. Instead of writing <a href="http://www.nytimes.com/2007/01/04/business/04home.html">another</a> <a href="http://www.nytimes.com/2007/01/07/business/yourmoney/07suits.html">article</a> about how CEOs are massively overpaid, dishonest, or both, Andrew Sorkin and Eric Dash make a <a href="http://www.nytimes.com/2007/01/08/business/08private.html?_r=1&amp;oref=slogin">strong argument</a> that U.S. CEOs are <em>underpaid</em>! According to the <a href="http://www.nytimes.com/2007/01/08/business/08private.html?_r=1&amp;oref=slogin">article</a>, private equity firms are increasingly successful in luring talented public company executives to run private equity-funded firms. A big part of the reason is that private equity firms pay those executives more.</p>
<p>Consider what this exodus of talented public company executives to private equity-funded companies means. These executives can certainly get hired as CEOs of public companies. If they were so overpaid, they would not leave the public companies. The fact is that many of them are leaving to run private equity-funded companies.</p>
<p> <a href="https://corpgov.law.harvard.edu/2007/01/09/are-ceos-of-us-public-companies-really-overpaid/#more-38" class="more-link"><span aria-label="Continue reading Are CEOs of U.S. Public Companies Really Overpaid?">(more&hellip;)</span></a></p>
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