Paying CEOs for 'performance' may not be a significant improvement unfortunately. Daniel Kahneman, and Nassim Taleb have spoken about this - essentially that t

Paying CEOs for 'performance' may not be a significant improvement unfortunately. Daniel Kahneman, and Nassim Taleb have spoken about this - essentially that there's no good reason to think CEOs of large companys have any significant control over their company's outcomes. Our judgement is clouded by a combination of hindsight and narrative biases along with a significant underestimation of 'luck'. Kahneman quotes something like a .6 correlation IIRC. So, it CEO performance exists, it's just overestimated. Kahneman's new book - Thinking Fast and Slow - is an excellent read. http://www.smh.com.au/opinion/in-dumb-luck-we-can-trust-20120127-1qldb.html?skin=text-only http://www.smh.com.au/opinion/in-dumb-luck-we-can-trust-2012...