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I doubt they should be so worried. Studies show no link between executive pay and executive performance: http://www.economist.com/blogs/graphicdetail/2012/02/fo
by KingMob 12y ago
I doubt they should be so worried. Studies show no link between executive pay and executive performance: http://www.economist.com/blogs/graphicdetail/2012/02/focus-0 http://www.economist.com/blogs/graphicdetail/2012/02/focus-0
- bostonpete 12y agoI think this is showing a lack of a link between executive pay and stock performance. It could be the case (though I don't know how you'd measure it) that executive performance improved with pay but just had no discernible impact on stock performance.
- niels_olson 12y agoI don't think most executives do it for the money. Money is just a way of keeping score.
- eloff 12y agoIt doesn't matter, performance is not the only concern. Connections and domain knowledge are even more valuable. Let's say you're Amazon and you pay your CTO a respectable $250k/year. Along comes Microsoft or Google and offers him ten times as much. He's rational so he accepts and take with him all of Amazon's technical secrets to success. Even if there were national regulation capping executive pay in the US, other countries would hire away all of the top players with all their knowledge and connections. It would be a disaster. Is executive pay crazy? Yes, often. But the market supposedly is efficient and the pay is that high for rational reasons in many cases (not all!)