Kingpins the argument always trotted out by firms is that it is to reward and retain competent managers/directors but with the amount of shares some of these boards and directors already own it is already in their own best interest to make the company perform, if you are not motivated by holding 10 million shares in the company you manage, how is being given another 2 million each year going to make a difference other than working in reverse and allowing them to do less because they have more wealth straight away. It could also stymie the desire to take any risk to grow the company in case it does work out and their existing share price drops.
Obviously not all boards and directors are like this, but the amount the company heads get paid is completely out of kilter with the average person in society and will eventually cause 'unrest' due to the ever increasing disproportionate wealth distribution in society.
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