The Corner Office in Bangalore

Outsourcing of manufacturing and service jobs has led to skyrocketing compensation for chief executives at the expense of shareholder profit, according to authors Lawrence Orlowski and Florian Lengyelion. With a large global pool of executive candidates and the average compensation for foreign CEOs much lower than that of their US counterparts, corporations could save even more by locating the "corner office" outside of the US. Besides monetary savings, foreign CEOs could offer critical knowledge of the cultures and languages of potential markets, and help companies transform from an American identity to a global one. By cutting perverse incentives and opportunity costs created by the current levels of executive compensation, US corporations that offshore their CEO positions could establish "a virtuous circle of shareholder profitability." Intense global competition for those jobs could certainly lead to more profits and end complacency among CEOs. – YaleGlobal