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The Real Story Behind Executive Pay

The Myth of Crony Capitalism

Author: Steven N. Kaplan
May/June 2013
Foreign Affairs

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As the share of income taken home by top earners in the United States has risen over the past few decades, so, too, has popular concern about economic inequality -- something the Occupy Wall Street movement loudly reminded Americans about in 2011. Much of the outrage has centered on the compensation of the United States' top corporate executives, who are said to be taking home ever-fatter paychecks, while the incomes of lower-level employees have stagnated.

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