Friday, 10 March 2017

Increasing CEO pay linked to decreasing company performance

For some years, EIG has followed the issue of excessive executive compensation, voting as shareholders against such pay packages as far as resources allow. In a new report, analysis shows a dramatic conclusion: the higher paid the CEO, the worse the company performance. Over 2 years of reporting, "not only does the group of 100 most overpaid CEO companies of the S&P 500 underperform the S&P 500 by 2.9 % points, but the firms with the 10 most overpaid CEOs underperformed the S&P 500 index by an amazing 10.5 % points and actually had a negative return, reducing the actual value of the companies' shares by 5.7%." 
See:  The 100 Most Overpaid CEOs

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