The top salaries in management and in some professions have risen extremely rapidly since the 1970s, far exceeding the growth rates of most wages and salaries, or of the output of goods and services. This chapter, summarizing a book-length analysis of the escalating standards for managerial and professional compensation, addresses three questions: Are certain executives and professionals significantly overpaid? Is the supply of intellectually gifted university graduates distributed among the fields in a manner that matches the nation’s needs? Do current methods of compensation motivate professionals to work suitably hard for appropriate goals?
