Report Highest-paid CEOs run worst-performing companies, research finds

[tom_mai78101]

The highest-paid CEOs tend to run some of the worst-performing companies, according to new research.

The study, carried out by corporate research firm MSCI, found that for every $100 (£76) invested in companies with the highest-paid CEOs would have grown to $265 (£202) over 10 years.

But the same amount invested in the companies with the lowest-paid CEOs would have grown to $367 (£279) over a decade.

Titled Are CEOs paid for performance? Evaluating the Effectiveness of Equity Incentives, the report looked at the salaries of 800 CEOs at 429 large and medium-sized US companies between 2005 and 2014 and compared it with the total shareholder return of the companies.

The report notes: “Equity incentive awards now comprise 70% or more of total summary CEO pay in the United States, based on our calculations. Yet we found little evidence to show a link between the large proportion of pay that such awards represent and long-term company stock performance.

The highest-paid CEOs run the worst-performing companies

Research firm finds businesses led by lower-paid CEOs earn greater shareholder return

www.independent.co.uk

 

[Accname]

Well no shit. These people are paying themselves, of course the shadier they are the more they take.