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There is an inverse correlation between CEO pay and performance. http://thinkprogress.org/economy/2014/06/17/3449737/ceo-pay-inverse-performance/ http://thinkp

• lazaroclapp 11y ago
  But, by summing your post and the GP, one can easily hypothesize that the causal relation goes the other way around: sinking companies hire expensive CEOs to try and save themselves. Often that doesn't succeed, because the company was sinking for reasons deeper than poor leadership. The real question is: do success rates improve for sinking companies that hire a expensive CEO versus those that keep their existing leadership or hire no-name CEOs?
• peyton 11y ago
  Is it possible that firms in trouble need to offer higher compensation to attract and retain CEOs? I skimmed the paper and couldn't find a counter argument, but I didn't understand all the jargon.