Leo Hindery, a managing partner at InterMedia Partners, said Thursday on Fox Business that executive pay had become too high in the United States and was not longer based on performance.

He noted that previously it was considered appropriate for business executives to make 15 to 20 times more money than the average employee. While many countries have continued to embrace the concept, the United States has allowed executive compensation to soar.

The average business executive in the United States is now paid 400 times more than the average employee, who earns about $34,000 per year.

"Nobody knows what the right number is," Hinderly said.

But it was "common sense" that executives getting paid 400 times what the average employee makes was too much.

"The first thing we have to do is make compensation really consistent with performance," Hinderly added. "What we know for a fact is every time a CEO misses his targets, well the bonus plan is reset."

He said those bonus plans needed to be tied to "actual results."

Watch video, courtesy of Fox Business, below: