BBC: Why CEOs make so much money
February 2, 2021
The executive pay gap (CEOs) has its roots in the policies put forth in the 1980s by the Reagan administration in the US and the Thatcher government in the UK. Their political philosophies drove deregulation, privatization of the public sector, and free-market capitalism. Both also took a dim view on labor unions, which ultimately played a role in these organizations’ reduced capacity to advocate for workers.
Robin Ferracone, CEO of Farient Advisors, an international executive-pay consultancy, agrees with these “price-driven” salaries. “If you have good CEOs, the multiplier effect can be huge,” she says. “So, in principle, median pay for median performance and high pay for high performance makes sense for CEOs.”
By Peter Yeung
About Robin Ferracone
Founder and CEO, Farient Advisors/GECN Group
New York: (646) 626-6931
Los Angeles: (626) 799-2700
As the founder and CEO of Farient Advisors LLC, Robin has led the strategic development and expansion of the executive compensation, performance, and corporate governance advisory firm. Her client work focuses on providing high-impact decision-making support and organizational solutions based on insightful market insights.
With over 30 years of consulting experience, Robin advises clients in business and talent strategies, executive compensation, organization, value management, and performance measurement. She is the author of Fair Pay Fair Play: Aligning Executive Performance and Pay (John Wiley & Sons, 2010). In addition, Robin has authored numerous articles, is a regular contributor to Forbes.com and Directorship magazine, and is often quoted in national publications. She is a frequent presenter for prominent organizations such as the Council of Institutional Investors, Society for Corporate Secretaries and Governance Professionals, the National Association of Corporate Directors (NACD), and The Conference Board.
Robin formerly served on the board of directors of Trupanion, Inc., where she chaired the compensation committee. In addition, Robin is a trustee emeritus of Duke University. She currently chairs the board of WildAid and is a member of 5050 Women on Boards, NACD, Women Corporate Directors, YPO Gold, and the Trusteeship. For 12 years, Robin has been named to the NACD Directorship 100, a list of the most influential people in corporate governance and the boardroom. In 2014, she was selected as one of EY’s Entrepreneurial Winning Women, an annual competition recognizing female entrepreneurs. Robin is also a founding partner of the Global Governance and Executive Compensation (GECN) Group collectively serving clients in more than 35 countries across five continents.
Robin received an MBA from Harvard Business School and a BA in management science and economics from Duke University.
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