A new book entitled "Myths and Realities of Executive Pay" by Ira Kay argues that executive compensation may be fair after all. Kay believes that executive compensation is the reason for - in no small part - the rise of the Dow Industrial average, which stood at 5,000 in 1996, to well above 13,000 now. These high compensation amounts motivate executives to make difficult decision like move offshore and sell off businesses. After all, without compensation to align the interests of shareholders and management we would likely see more businesses that are run by families or majority shareholder control - that is, those that are resistant to positive change that would generate shareholder value. Now, whether the compensation also makes executives act with a more short-termed outlook is another topic entirely. Perhaps companies should start issuing LEAPS or restricted stock to executives instead of short term options that they can sell off in just a few months.