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Debate: Is 'Outrageous' CEO Pay A Necessary Evil?

Should the government intervene when CEO pay becomes "outrageous"? Sarah Anderson, an Institute for Policy Studies fellow, debated Stephen Moore, editorial board member at The Wall Street Journal, on "Morning Call."

The House of Representatives will be considering a bill mandating non-binding shareholder votes on chief executive pay. But Moore told CNBC's Mark Haines that "all the studies" indicate that CEO pay is "highly correlated" to a company's stock performance -- and attempts to legally cap compensation will injure U.S. competitiveness in the global economy.

Anderson took issue with Moore's pay-performance model, citing the Journal's own reports that some of the "worst performers" in share price were led by the highest-paid CEOs. She suggested that rather than enacting pay caps, Congress might consider using tax policy and setting "reasonable" limits on deductibility. Anderson warned the current "outrageous" pay system hurts productivity by weakening employee morale.