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Wasn't there analysis that company performance is inversely correlated to CEO compensation? I remember seeing a chart, though I don't remember whether the anal
by BariumBlue 3y ago
Wasn't there analysis that company performance is inversely correlated to CEO compensation?
I remember seeing a chart, though I don't remember whether the analysis was well done & researched or not
- prerok 3y agoI have not seen it but, to me, it kind of makes sense if you put an average overall. I think companies making a lot of money are in a world of trouble: sweet trouble, to be sure, but still trouble. Sustaining the same percentage growth is incredibly difficult once you are big. So, what is there to do? Expand to new markets, create new products with the potential to destroy your existing ones, fire people you think are no longer needed? Decisions that will either make more money or destroy the company. And, no matter what anyone else would say, I think their decisions are worse than half chance. In the end we praise the CEOs that made the "right" choice. But it was the right choice only in hindsight, it could easily have gone in the other direction, as many many examples of previously successful CEOs have shown. Nobody stays on top forever and that's just how it is. Now, as for the CEOs' salaries: they are the same regardless of their successful choices. So, when you average it out, it would look like it is inversely proportional, simply because more companies tank than stay on top.