Where Is The Corruption In The System?

Perhaps the most perverse manifestation of the corruption in the system shows through in the area of executive compensation.

Whether it is absolute levels of remuneration/inurement or relative levels (vis-a-vis avg. compensation within a business), executive pay is out of whack with any sense of reasonableness. This is, of course, a broad brush to be painting with, and there are obviously many exceptions, but on the whole executive compensation is bananas.

Who's fault is it? Is it the government for not regulating such activities? Is it society/culture for tolerating such inequity? Is it greed and entitlement among the executive class? Is it the consultants who facilitate the game? Is it a principal-agent relationship gone AWOL? Is it boards stacked with management cronies? Is it institutional shareholders who have abdicated their stewardship responsibilities? Is it regular mom and pop shareholders who are too apathetic and complacent (or powerless)?

I dunno. I think everybody and everything contributes to the problem. But boy, does this description not also look and sound like the problems that led us into the financial crisis.

The failure of monetary authorities, perverse incentive structures imbedded in the system, facilitation by ratings agencies and regulators, greed of the investment banks and bankers, "all care and no responsibility" among mortgage brokers and securitizers, failure of moral courage among borrowers.

All of which begs the question, where is the outrage? or better yet, where is the shame?