Dollars and sense

The question arose as to how the finance and corporate sectors manage to pay their senior management so highly?

I know how it works… it’s a club of self serving and like minded types patting each other’s backs.

But as to how it emerged? The opportunity was always there but over time, since the ethical revolution of the sixties, moral responsibility in business has contracted to the legal minimum requirement. And the same guys have even been able to influence the legal requirement.

It wasn’t always thus. It happened gradually as greed (the motivating force) drove incremental changes in behaviors. In order to remain competitive everyone was dragged along, again incrementally.

Four decades later and we have the situation where the maximum personal gain is extracted from asymmetries in control and information.

However I do think the process is nearly at its peak. The internet will eventually disintermediate the asymmetries.  One should expect troubles when the toys are removed from the children though.