Highest-Paid CEOs Run Worst-Performing Companies

July 28th, 2016

Via: Independent:

The highest-paid CEOs tend to run some of the worst-performing companies, according to new research.

The study, carried out by corporate research firm MSCI, found that for every $100 (£76) invested in companies with the highest-paid CEOs would have grown to $265 (£202) over 10 years.

But the same amount invested in the companies with the lowest-paid CEOs would have grown to $367 (£279) over a decade.

Titled ‘Are CEOs paid for performance? Evaluating the Effectiveness of Equity Incentives’, the report looked at the salaries of 800 CEOs at 429 large and medium-sized US companies between 2005 and 2014 and compared it with the total shareholder return of the companies.

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