Do you think that a company that offered a lower compensation to its CEO would have a compeditive advantage?
Seems as if sheer Darwinism would make this problem self correcting.
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It isn't, because the boards of most companies are more often toadies of the company presidents.
European companies pay their CEO's a lot less, to no measurable disadvantage.
Observe that there are telephone companies that have paid their presidents many times more than the president of the US. It is hardly a tougher job to run a phone company. It is very unlikely that a phone CEO would have to be as knowedgeable of the world as the president of a country.