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How much is a CEO worth?

Outrage over executive compensation is now widespread. Linking pay to economic valued added rather than more easily manipulated EBITDA might be an improvement.

       
Pay package in the spotlight
Chris Grant, Vodafone

Vodafone's announcement last month of a new pay deal for chief executive Chris Gent raised a predictable investor outcry. Gent's package, shareholders argued, was too much for too little and set a dangerous precedent for patterns of compensation at Vodafone and other blue-chip companies. The news that Gent was paid £2.4 million ($3.5 million) - an increase of almost a third - in a year in which Vodafone recorded a loss of £13.5

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