Substantial empirical literature and meta-analyses support the conclusion that US CEOs often leverage managerial power and weaknesses in corporate governance to extract rents and increase their compensation.
The retrieved papers feature several high-impact studies and meta-analyses (such as managerial power and rent extraction frameworks) that provide strong empirical backing for the claim that CEOs exploit governance structures to increase pay. While some optimal contracting models offer alternative explanations, the weight of the evidence supports the managerial power theory.