The Highest Paid CEOs Run The Worst Companies

August 25, 2016 in Daily Bulletin

Peter Yeung reported on a study that looked at CEO pay and company success:

  • A study found that an individual who invests $100 in companies with the most highly paid CEOs, will see their money grow to $265 over ten years.
  • But if that same $100 was invested in companies with the lowest paid CEOs, the money would balloon to $367 over the same time period.
  • This seems to be driven in part by a corporate culture – that regulators sometimes encourage – which focuses on annual performance rather than long-term gains.
  • What’s unclear is if potential bosses demand high pay so that they take on the job of the CEO of a company that was already struggling – thus explaining the poor performance.

Read more here.

Source: The Independent