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Source? reminder that CEO pay is negatively correlated with company success (https://www.wsj.com/articles/best-paid-ceos-run-some-of-worst-performing-companies
by MiroF 7y ago
Source?
reminder that CEO pay is negatively correlated with company success (https://www.wsj.com/articles/best-paid-ceos-run-some-of-worst-performing-companies-1469419262 https://www.wsj.com/articles/best-paid-ceos-run-some-of-wors...)
- dragonwriter 7y agoIf you assume CEOs are basically success signalling devices without active influence on success whose prestige (and thus, the success they signal) is harmed by association with failure, that makes sense: the added pay is compensation for harm to prestige.
- MiroF 7y agoYes that would probably explain the negative correlation. That said, if good CEOs actually controlled the direction of the company and were compensated higher to attract talent - I would expect that to override the negative effect for a net positive. Since that's not the case, I think as you suggest that CEOs are "without active influence on success"