Tom Sowell on CEO Pay

Thomas Sowell is a man with a gift. When you read his books and essays, you think "Of course, this is obvious!" Now if only those obvious thoughts would occur to us before reading what he has to say - but then that's the gift. See for instance his insightful remarks on the emotionally vexed topic of CEO pay. It seems outrageous that an executive who runs a company into the ground can bail out with a golden parachute, and indeed, on one level it is outrageous! To take one's justifiable anger about this and then apply it to legislation limiting CEO pay, however, is to offer a cure that's worse than the disease, as Sowell so eloquently points out. (Exercise for the reader: figure out why that is before reading his essay.)