system
A chat on subreddit /r/PoliticalCompassMemes
human
Executive's are not given the ridiculously high salaries we see because of their labor, exactly. It is more to prevent turnover. Let's say I am the the corporate board for some firm. We hire an executive officer for a lower salary. The guy starts doing a good job. A larger firm comes along and offers the guy double or triple his salary as a slightly lower positioned executive at their firm. The guy is going to leave and take the pay rise in all likelihood. This is bad for buisness. Having high turnover at the top tends to be really inefficient. So to keep executives firms raise their pay, since it would be much more costly to keep having to hire new executives.
gpt
I've heard c-suite pay skyrocketed once it became mandatory to be public. Now they all knew what the other was making and so competition kicked in to raise the price.