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I wonder how big of a difference in revenue these companies would have if they operated without any CEO, just an empty chair.
by mouzogu 5y ago
I wonder how big of a difference in revenue these companies would have if they operated without any CEO, just an empty chair.
- ajmadesc 5y ago"We find evidence that industry and size adjusted CEO pay is negatively related to future shareholder wealth changes for periods up to five years after sorting on pay. For example, firms that pay their CEOs in the top ten percent of pay earn negative abnormal returns over the next five years of approximately -13%. The effect is stronger for CEOs who receive higher incentive pay relative to their peers. Our results are consistent with high-pay induced CEO overconfidence and investor overreaction towards firms with high paid CEOs." https://online.wsj.com/public/resources/documents/CEOperformance122509.pdf https://online.wsj.com/public/resources/documents/CEOperform...
- idrios 5y agoI'd speculate that without a CEO at all, it would become Lord of the Flies for any of the other executives and the effects of this would ripple into the rest of the company culture, making the company an incredibly toxic place to work. Not saying that's worse than a CEO who takes enormous profits for his or herself, AND is toxic. Just that there's value in good leadership
- xtiansimon 5y agoI agree with you about the leadership role of CEOs in a firm. I’m curious about this, “.. CEO who takes enormous profits..” Are you implying CEOs are orchestrating their own compensation? Or, are you casually referring to CEO compensation packages?