Everyone knows that chief executives at public companies are overpaid by the corporate boards they keep in their hip pockets. Afterall, the Pulitzer Prize winning New York Times business writer Gretchen Morgenson tells them so every chance she gets. In fact, they are so overpaid that a lot of them are fleeing to privately held companies…obviously out of embarrassment at their ill-gotten gains. Or, you know, maybe not.
Here's Steven Kaplan writing on the Harvard Law School Corporate Governance Blog:
Consider what this exodus of talented public company executives to private equity-funded companies means. These executives can certainly get hired as CEOs of public companies. If they were so overpaid, they would not leave the public companies. The fact is that many of them are leaving to run private equity-funded companies.
See full Article.
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