By invitation of the head of the finance department, Dr. Chinmoy Ghosh, I am guest lecturing to students this fall as part of a Financial Risk Management graduate-level course. During a recent session about executive compensation - one of the topics I was asked to address - more than a few students opined that CEOs earn too much and do not work as hard as they should.

Having been a CEO of a start-up company and knowing firsthand that the job duties seemed to never end, I was intrigued and maybe a bit puzzled. Class participants added that production line efforts are the lifeblood of any company's success and that labor should receive more benefits. I pointed out that someone has to design the manufacturing process, raise capital and ensure that resources for staff, distribution and marketing, inter alia, are available. I was reminded of a 2009 comedy called Extract in which Jason Bateman, acting as company CEO, tells his workers that they can get the "big bucks" any time they choose to take on the responsibilities of keeping the factory afloat.

With regulatory initiatives such as "say on pay," the issue of whether executives get paid "too much" is actively discussed in the U.S. and abroad. Whom one asks will no doubt influence the outcome. Not surprisingly, those at the top are advocates of their respective pay packages, touting the notion that their efforts and willingness to take risks gives them the right to top money. In "Do the rich just work harder? Some CEOs certainly think so" (The Guardian, September 26, 2014), Jana Kasperkevic showcased the views of various corporate leaders (some of whom founded their firms) who undeniably believe that hard work moves one forward and that opportunities are made and not awarded. Readers' comments were somewhat divided with certain individuals making the point that hard work and wealth are not always positively correlated.

Based on results from a 2014 YouGov/Hufifngton Post survey, two out of three U.S. adults polled answered that "Executive pay is generally too high" and that corporations are the primary beneficiaries of government largesse.

The reality is a lot more complex than "we versus them." For one thing, millions of individuals own shares if they participate in a company-sponsored stock plan or have bought mutual funds that invest in corporate-issued stocks and convertible bonds. In June 2014, the National Center for Employee Ownership published an estimate that "approximately 28 million Americans own employer stock through employee stock ownership plans (ESOPs), options, stock purchase plans, and 401(k) plans." The 2014 Factbook, published by the Investment Company Institute, states that over half of the $15 trillion in U.S. mutual fund assets at year-end 2013, is allocated to domestic and global equity. Corporate shareholders are diverse and include retirees, laborers, professionals and executives.

The issue of executive pay is unlikely to dissipate any time soon. It is a hot button topic, destined to excite voters and investors alike. Some feel that pay for performance has made a dent in aligning interests between managers-"agents" and shareholders. Others disagree, as discussed in "The Pay-for-Performance Myth" by Eric Chemi and Ariana Giorgi (Bloomberg Business Week, July 22, 2014).

Notwithstanding critical questions relating to how much, why and when, corporate boards have an important role to play in communicating their process and demonstrating that they took care in deciding on the compensation packages for key persons. The Council of Institutional Investors "believes that executive compensation should be transparent and tied tightly to corporate performance, create value for the long-term and advance a company's strategic goals. Executive compensation is the most critical and visible aspect of a company's corporate governance."

What I find interesting is that my students had no qualms about a personality like Beyonce making as much as she does. They did not recognize that her "production of something good" mirrors the important role of an effective leader who helps to create jobs and add to shareholders' long-term wealth. Talk about the need for a good public relations expert in C-Suite land.

For those who want to learn about execution compensation metrics and the nature of litigation in this area, you can download "Performance-Based Executive Compensation: Governance and Litigation Considerations for Employers, Directors, institutional Investors and Their Counsel" by Attorney Jeffrey P. Crandall (Davis Polk & Wardwell LLP) and Dr. Susan Mangiero (Fiduciary Leadership, LLC). This event was sponsored by the Practising Law Institute and took place on June 25, 2014.