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Question: In 2005, firms in the Standard & Poor's 500 Index paid their CEOs, on average, $13.51m - a 16.1% increase over the previous year.

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In 2005, firms in the Standard & Poor's 500 Index paid their CEOs, on average, $13.51m - a 16.1% increase over the previous year. So the average CEO compensation was 411 times the average employee's compensation. In 2006, the increase in CEO pay was 8.9%. Every year, the controversy over CEO pay arises again.

What arguments could be made for each side?

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