Executive pay should reflect perfor-mance, right? But does it? A recent survey by the Hay Group, a consultancy, puts the average basic annual salary of the chief executive of a large American firm at $1m. But his total remuneration is more like $5m. Some of the extra comes in perks, but most is "variable pay"-bonuses and stock options that supposedly relate to the performance of his firm. That high level of variable pay should lead to sizeable fluctuations in total remuneration, as good years follow bad, and vice-versa. Yet for a while there has been little sign of that.
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