Perhaps you've misinterpreted that statement? It is the board that takes on greater risk with executives as compared to other employees. The executives are given the keys to the kingdom, which means only an exceedingly small group of trusted individuals can be considered for the job. By the transitive properties of supply and demand, when supply is limited, price goes up.
The thing is, high executives have become a self-perpetuating class entrenched in corporate boards, this is the reason CEOs comoensation keeps skyrocketing, not supply and demand. And this entrenchment obviously also stifles accountability.
How does this self-perpetuating entrenchment not become a factor in what establishes the supply and demand, instead managing to exist as something off to the side?
Perhaps you've misinterpreted that statement? It is the board that takes on greater risk with executives as compared to other employees. The executives are given the keys to the kingdom, which means only an exceedingly small group of trusted individuals can be considered for the job. By the transitive properties of supply and demand, when supply is limited, price goes up.