High executive pay hasn't quite reached that status of a bipartisan "crisis," but it's approaching it. The Democratic senator from Virginia, Jim Webb, fulminated against it in his response to President Bush's State of the Union address last year. Bush himself, in a "State of the Economy" speech on Wall Street, urged corporate boards to "step up to their responsibilities" to better manage CEO pay.
CEOs might be paid extremely well, but they don't have easy jobs. Their performance is always evaluated by the inescapable taskmaster, the financial markets. When they are found lacking, they are canned -- witness Kevin Rollins at Dell, out as CEO after just two and a half years. CEOs last on average about six years in their jobs.
There are always examples of excess. The CEO of Home Depot, Robert Nardelli, stoked outrage when he left the company with a $200 million severance package. His contract was a relic of the bull market of 2000, but it was understandable that Home Depot had desperately wanted a highly regarded former GE executive. One theory says that corporate boards of publicly traded companies are too cozy with management, so they dole out excessive pay. This happens sometimes. But companies owned by private-equity firms with a direct stake in their success pay similarly large packages to entice and keep hard-charging CEOs. The market knows what it's doing here. Politicians don't.