Business Quote by William W. Lewis
““Even the highest compensation is a tiny fraction of the value created by many business and technical innovations. The problem with executive compensation in the United States is not with this idea. The problem is that in many cases the high compensation levels persist even when innovations do not occur and reactions to the innovations of others are slow.””
About This Quote
Source Speech: Business Ethics Forum, 2015
Compensation often exceeds the actual value generated by innovations, especially when pay persists despite lack of new ideas.
In simple terms: Pay can outpace real value created.
Key Takeaway
Align pay with genuine innovation outcomes.
Themes
compensation
innovation
corporate governance
value creation
Mood
critical
analytical
Type
advisory
commentary
When to use this quote
- executive hiring
- performance reviews
- stock option design
- innovation budgeting
Key Concepts
agency theory
moral hazard
incentive alignment
Questions to Reflect On
- How can firms ensure pay reflects true value?
- What metrics best capture innovation impact?
A Different Perspective
High pay may incentivize short‑term gains over long‑term innovation.
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