Whenever a conversation about executives come up, many tend to jump into the "this is not fair" band wagon. Below is a different take on senior executives that may help shed light on why some things are the way they are.
To become a senior executive, the individual must often pass through many trials and tribulations which entails risk taking. A portion of that comes with taking a leap into different verticals, inheriting and resolving other people's mess, taking a strategic perspective on things, etc. But you must think, "other's also have to go through that" and it is true, but for potential and new executives, it tends to happen more often and at a greater risk to the self and the organization. The risk they take also needs to account for competition, time without family/friends, emphasis in the company not in the self, etc. All of these are risks, and when compounded can increase the compensation value of an executive. If the market functioned differently it is likely that a lot less people would be interested in taking that jump, specially in today's economy, where most computer & IT occupations have a similar median pay than a top executive [1][2] (USA numbers).
As they become the 0.01% of the 0.01% in their area of expertise, they are able to command better compensation for their time. By being part of that equation, you often have to jump into publicly traded companies and become a public figure (internally & externally) which is viewed as a premium in market led opportunities (artists, sports players, etc).
A simpler way to visualize the demand aspect of it is to ask yourself: If you had $1m, would you prefer to put it in the hands of someone with reputation or in the hands of the average Joe passing by? Would you pay $300k to get the best doctor to treat your illness with a 5% higher odds of survival or would you be fine to do it with someone else for $50k?
Of course, there are still questions regarding market distortions, cronyism and many others that should be taken into account and potentially acted upon to create what society perceives to be fair. It is just important to be mindful of the overall picture.
To become a senior executive, the individual must often pass through many trials and tribulations which entails risk taking. A portion of that comes with taking a leap into different verticals, inheriting and resolving other people's mess, taking a strategic perspective on things, etc. But you must think, "other's also have to go through that" and it is true, but for potential and new executives, it tends to happen more often and at a greater risk to the self and the organization. The risk they take also needs to account for competition, time without family/friends, emphasis in the company not in the self, etc. All of these are risks, and when compounded can increase the compensation value of an executive. If the market functioned differently it is likely that a lot less people would be interested in taking that jump, specially in today's economy, where most computer & IT occupations have a similar median pay than a top executive [1][2] (USA numbers).
As they become the 0.01% of the 0.01% in their area of expertise, they are able to command better compensation for their time. By being part of that equation, you often have to jump into publicly traded companies and become a public figure (internally & externally) which is viewed as a premium in market led opportunities (artists, sports players, etc).
A simpler way to visualize the demand aspect of it is to ask yourself: If you had $1m, would you prefer to put it in the hands of someone with reputation or in the hands of the average Joe passing by? Would you pay $300k to get the best doctor to treat your illness with a 5% higher odds of survival or would you be fine to do it with someone else for $50k?
Of course, there are still questions regarding market distortions, cronyism and many others that should be taken into account and potentially acted upon to create what society perceives to be fair. It is just important to be mindful of the overall picture.
[1] https://www.bls.gov/ooh/computer-and-information-technology/... [2] https://www.bls.gov/ooh/management/top-executives.htm