In Are CEOs paid for performance? Evaluating the Effectiveness of Equity Incentives, a new study from MSCI, researchers compared the salaries of 800 US CEOs of large and medium-sized companies to the returns to their shareholders during their tenure.
They found that high CEO pay did not correlate with higher returns, and that the lowest-paid CEOs "more consistently displayed higher long-term investment returns" and that "The highest paid had the worst performance by a significant margin."
But of course, these CEOs pack their boards with other CEOs, who benefit from nudging up the average CEO compensation.
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.
Are CEOs paid for performance? Evaluating the Effectiveness of Equity Incentives [MSCI]
Highest-paid CEOs run worst-performing companies, research finds
[Peter Yeung/The Independent]
Here’s a good explainer from Reuters on the airline industry’s response to the Wuhan coronavirus outbreak so far. If the virus spreads becomes a pandemic, this could impact world financial markets as did SARS in 2003.
Latest update blurs ads vs. search results line
@radmint tweeted a photo from her Microsoft New Employee orientation in which she is posed with a "celebrity Clippy"; the eagle-eyed Kristen Seversky noted that the forearm of the actor in the Clippy suit is adorned with a seemingly permanent, very prominent Clippy tattoo.
The life of an entrepreneur is rarely easy, regardless of whether you’re running Google or have yet to get your first idea off the ground. So why not make your life easier with a lifetime subscription to Zuitte 50+ Tools for Entrepreneurs while it’s over 90% off? With over 50 powerful tools that help everyday […]
When it comes to top-quality kitchen gadgets that won’t break the bank, nothing beats Gourmia. These eight best-selling Gourmia tools will help you take your culinary prowesses to the next level, and each one is available for an additional 15% off when you enter the coupon code COOKSAVE15 at checkout. 1. Gourmia GTF7350 6-in-1 Multi-Function […]
Traditional headphones are overrated, especially now that this HumBird Bone-Conducting Speaker allows you to enjoy a rich and completely unique listening experience depending on where you place it. A must-have item for true audiophiles looking to switch up their usual listening routine, this compact speaker uses cutting-edge bone conduction technology in order to deliver a […]
