Recently I came across this article on CEO compensation in Slate by Ray Fisman. It’s a very interesting article, and the position Fisman takes, that CEOs and compensation committees usually do not enter into undue intrigue and backhand politics, is probably accurate.
Most compensation and nomination committees do take their jobs very seriously, and try to emerge with compensation packages that make sense. But the challenge they have faced and the challenge society continues to face is that of peer comparison. [...]

What exactly is ‘power’? People define it in multiple ways: as a fundamental way of behaving in organizations, as a form of personal influence, as a key factor that leads to success; as the manner in which resources are used, as a means of creating dependency on the power wielder, and as an exciting experience.
It’s useful to think in terms of different types of power you’ll encounter in an organization.

role power-from holding a particular role in an organization from which resources can be used to influence, such as power of authority, power to allocate rewards, power to punish, power to control resources, power of dismissal/demotion, power to change structures, power to coerce, power to arbitrate
personal impact power-application of individual characteristics like extroversion, charm, physical attractiveness
reverence power-promoting a mystique whereby the adulation of the leader reaches immortal [...]