Corporate executive salaries have increased significantly in recent years, leading to concerns in the community. Research investigated the relationship between executive salaries, distributive justice, and economic efficiency. Findings show weak correlation between executive pay and company performance in Australia, and no reliable link in the US. High executive salaries may increase the risk of corporate collapse. There is no evidence that higher executive pay leads to greater economic efficiency or shareholder returns. The market rate theory suggests executive salaries should be fair, but the current market fails to meet these conditions. Management power theory is a better explanation for high executive salaries than alignment theory, as it is based on exploitation of power by executives.