But even if that would be the case and people with CEO skill sets would be extremely rare, I would still have a problem with CEO compensation because then their compensation would be, so I argue, based on demand and not value provided for the company. The success of a company depends on all the people working together, without CEO the people on the factory floor don't know what to do, without the people on the factory floor the CEO doesn't get any product out. Neither party gets to claim that they are a hundred times more important than the other one.
Even if you agree that the compensation is mostly driven by scarcity, you will of course tell me that that is just how markets work, if good CEOs are rare and in high demand, then I will obviously have to offer a lot of money to get a good one. And I agree with that insofar, that this is how it currently works, but I consider it flawed. I would like to see, at least in some situations, prices not influenced by scarcity. If you now want to point out that this would ruin market mechanisms, that without scarcity increasing prices we would lose an important signal hopefully increasing supply, I also agree with this.
If I had a finished solution, I would have written it up and collected my Nobel prize in economics years ago. But that doesn't change the fact, at least in my opinion and at least in some situations, that prices are used for both, to measure the value something provides as well as how scarce something is, and that this link is sometimes desirable and sometimes not.
