Tuesday, July 26, 2016

Highest-Paid CEOs Run Worst-Performing Companies, Research Finds (independent.co.uk)

According to a study carried out by corporate research firm MSCI, CEO's that get paid the most run some of the worst-performing companies


 It found that every $100 invested in companies with the highest-paid CEOs would have grown to $265 over 10 years.

 However, the same amount invested in the companies with the lowest-paid CEOs would have grown to $367 over 10 years. 

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

 Senior corporate governance research at MSCI, Ric Marshall, said in a statement: 

"The highest paid had the worse performance by a significant margin.

 It just argues for the equity portion of CEO pay to be more conservative."

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