Income disparity and executive pay

Peter Whoriskey has a very interesting article at The Washington Post about the connection between executive pay and income disparity.  The data is striking.

He points out that income disparity in the U.S. has grown along with the increase in executive compensation.  Many economists are concerned about this, but there appears to be no clear resolution.  In fact, as Mr. Whoriskey points out, it is a common feature of modern capitalist economies.

Inequality, economists have noted, is an essential part of capitalism. At least in theory, “the invisible hand,” or market system, sets compensation levels to lead workers into pursuits that are the most productive to society. This produces inequality but leads to a more efficient economy.