As with alcohol prohibition and, later, drug prohibition, I think the legal environment flows from the cultural notions.
Managerial pay has gone up not because executives are hundreds of times smarter or more competent than a couple generations back. It's because the cultural notion of executives as a higher corporate caste has become much stronger.
In other words, it's not that we rationally measured the value of CEOs and paid them accordingly. It's that we stopped really thinking about it. In, more ore less, the same way that people stopped thinking rationally about drugs for some decades. The change in marijuana laws in the US is now happening not because of new facts, but because of new attitudes.
A shift away from managerialist thinking might similarly trigger new laws. But I doubt it will work the other way around. Especially given the new research showing that laws basically respond only to the interest of rich people and businesses: http://www.princeton.edu/~mgilens/Gilens%20homepage%20materi...
Managerial pay has gone up not because executives are hundreds of times smarter or more competent than a couple generations back. It's because the cultural notion of executives as a higher corporate caste has become much stronger.
In other words, it's not that we rationally measured the value of CEOs and paid them accordingly. It's that we stopped really thinking about it. In, more ore less, the same way that people stopped thinking rationally about drugs for some decades. The change in marijuana laws in the US is now happening not because of new facts, but because of new attitudes.
A shift away from managerialist thinking might similarly trigger new laws. But I doubt it will work the other way around. Especially given the new research showing that laws basically respond only to the interest of rich people and businesses: http://www.princeton.edu/~mgilens/Gilens%20homepage%20materi...