
Highest-Paid CEOs Run Some of the Worst-Performing Companies - frostmatthew
http://fortune.com/2016/07/25/ceo-pay-total-shareholder-return/
======
paktor132
I'm willing to believe that CEO pay reflects poor governance practices to some
degree, but this study fails to prove anything. As a simple alternative
explanation for the data, suppose that companies that are performing badly
have to pay more to attract CEO talent since the proposed CEO is taking on
reputation risk if they fail to turn the company around. Then you'd expect
exactly what the study found; the more highly paid the CEO, the lower the
corporate performance.

This report should have looked at how CEO pay in one year affected company
performance the next year and vice versa.

