Although mammoth executive compensation packages at hedge funds - hundreds of millions of dollars a year for some managers, with a select few topping US$1 billion - have recently been skewered in the business press, public outrage over soaring CEO pay has been growing for years.
Is the situation really that bad? And if top executives are overpaid, what's to be done about it?
As Thomas Dunfee, Wharton professor of legal studies and business ethics, puts it: Do executive compensation figures reflect an efficient market?
Some hedge fund managers make US$500 million a year or more through arrangements that typically bring their firms 20 percent of the fund's annual profits, plus yearly fees of 1 to 2 percent of the assets under management.
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