Under Eisenhower's tax rates where the highest tax bracket was 99%
CEOs had no incentive to "raid the treasury" by the simple expedient
of getting the board to give them high salaries/pay. This forced them
to get their compensation via stock grants and options, which meant
that they had to make the company perform, to make the stock price
rise. After all, getting the board to give a ten million dollar pay would
result in only 100,000 after taxes. Today with these lower tax rates,
executives can now walk away with tens, hundreds even billions of
dollar paydays even when the company is going bankrupt.
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