>there are a lot of studies that show companies where management has skin in the game do measurably better than companies where they don't. There are studies t

>there are a lot of studies that show companies where management has skin in the game do measurably better than companies where they don't. There are studies that show that management 'skin in the game' compensation policies have cause an epidemic of control fraud: http://neweconomicperspectives.org/2014/11/ceo-compensation-cheaters-prosper.html http://neweconomicperspectives.org/2014/11/ceo-compensation-... >that being said, there aren't data that would tell you, companies where the CEO will earn $1m or $10m depending on how well the company performs don't do as well as companies where the CEO will earn $20m or $200m. Actually there is data, but it demonstrates the exact opposite: http://online.wsj.com/public/resources/documents/CEOperformance122509.pdf http://online.wsj.com/public/resources/documents/CEOperforma... Lower paid CEOs perform better.