The compensation of executives is i

The compensation of executives is influenced by many factors, including both reasonable justifications and questionable excuses. One significant factor influencing the pay of chief executive officers is the level of revenues generated by their companies. As revenues increase the average pay of the top executives also increases. Executives also receive more in larger organizations with more levels of management, as shown in Exhibit 5. The pay of middle managers and supervisors is primarily influenced by their level in the organizational hierarchy. As a manager's position on the organizational chart rises, so too, does his or her average salary level. Executives salaries also are influenced by years of experience.