No doubt mankind has made great progress

No doubt, mankind has made great progress. It now knows that the earth rotates around the Sun, or how to combat AIDS. But despite all these advances, it is still not known why men earn piles of money. Finally, some men. Because everyone knows why Thierry Henry won 18 million euros last year: the market sets the price. It was purchased by FC Barcelona, who accepted his award and his salary by examining its performance 48 goals in the team of France, 166 assists decisive all combined competitions. Companies pay very expensive image. And the day where Tweety will weaken, its price will drop very quickly. Similarly, bankers know very well why pay astronomical bonuses to some traders, even if they sometimes find it difficult to explain: they bring their lot of money. And they measure precisely how much. But the patterns That is what justifies their wages

Note the words: he is not here of morality but of economy. The moral, is another story, where the political power must have the last word. If he thinks that some earn too, it may for example bludgeon them fiscally. After the crisis of the 1930s, Franklin Roosevelt had brought the rate of tax on income at 91 for the highest bracket. After all, the Declaration of the rights of man of 1789 says in its article 13 that the citizens must contribute "because of their faculties" in the financing of public action. A statement always news in these times where the sequestration of boss would pass for a harmless Act: it also States in article 7 that no man can be "arrested or detained only in cases determined by law."

In economic matters, therefore, there is surely explanations for the high salaries of CEOs. The European Commission will tomorrow propose rules which appear to be common sense that these wages are actually indexed on the long term and performance. For example, it intends to apply that stock options cannot be exercised for three years, a period that already exists in France. But it's a framework, not an explanation.

Of course, there is a trivial issue: CEOs earn much more money, if they are full of different remuneration. And each has its reason for being. Premium rewards exceptional performance. Stock options must align the interests of the leader of the shareholders. Retirement Hat maintains the standard of living and stretches income at the time to limit their imposition. Even the golden parachute has its usefulness, so the leader does not clings to her wheelchair. But all that does not say why patterns earn as much. Especially since it is difficult to distinguish what is their action and what is that other employees of the company, on the other hand of Thierry Henry.

Economists have an explanation EH well, not at all. While they studied everything and anything in 1826 of Wall Street panic to the impact of television on the Brazil children's given names, they do virtually nothing laid on the issue. At Harvard, capital world of management, Professor most tip on the subject, the young and brilliant Rakesh Khurana, guerroie against the idea of a market patterns, which is a myth. James Heskett, a Professor Emeritus and thus more weighted ends a ticket on CEO pay by asking: "Is there a subject as important as that on which we suppose even then that we know so little" Indeed, there is a baseline survey on the issue. A single, quoted in a loop, produced in 2006 by two French of New York: Xavier Gabaix and Augustin Landier (who commented on the other hand the economy in "Les echos"). They connect the flight of the remuneration of the CEO to the outbreak of the market value of companies. This is of course only a tiny part of history. Gentlemen patterns, to discover the reasons for your fees, pay to the economic research!