Daniel Edward Rosen looks at a study from the University of Utah, which shows that companies that pay CEOs more than $20 million a year have average annual losses over $1 billion.
http://www.vocativ.com/money/business/study-higher-pay-worse-ceo/
- Roosevelt Take: Roosevelt Institute Fellow and Director of Research Susan Holmberg and Campus Network alumna Lydia Austin look at additional ways high CEO pay distorts the economy.
Fixing a Hole: How the Tax Code for Executive Pay Distorts Economic Incentives and Burdens Taxpayers
http://rooseveltinstitute.org/policy-and-ideas/big-ideas/fixing-hole-how-tax-code-executive-pay-distorts-economic-incentives
High CEO pay really doesn't pay off for shareholders
ReplyDeleteCompanies supposedly "need" to pay their CEOs and other top executives giant, obscene piles of cash and benefits in order to attract top talent that will propel those companies to ever-greater success and profit. And giving CEOs lots of stock options supposedly ensures their best performance, because they stand to profit personally from good stock performance. But according to a new study, that and a load of other corporate conventional wisdom about CEO pay is just plain wrong:
The companies that pay their chief executives the most see the worst results for shareholders, according to a new study, with an average annual shareholder loss of $1.4 billion at the companies with the highest CEO pay.
Exorbitant CEO compensation packages breed overconfidence, study authors Michael Cooper, Huseyin Gulen, and Raghavendra Rau write, and overconfidence leads to bad decisions about weakened business performance. Contrary to the common claim that paying executives in stock will improve their management of a firm, the study finds that CEOs who are given non-cash incentive compensation actually perform worse. The negative effects of excess executive pay linger for three years and drag shareholder returns down by between 8 and 11 percent for companies with the most lavish CEO pay packages.
http://www.dailykos.com/story/2014/06/17/1307654/-High-CEO-pay-really-doesn-t-pay-off-for-shareholders
The Highest-Paid CEOs Are The Worst Performers, New Study Says
ReplyDeleteAcross the board, the more CEOs get paid, the worse their companies do over the next three years, according to extensive new research. This is true whether they’re CEOs at the highest end of the pay spectrum or the lowest. “The more CEOs are paid, the worse the firm does over the next three years, as far as stock performance and even accounting performance,” says one of the authors of the study, Michael Cooper of the University of Utah’s David Eccles School of Business.
http://www.forbes.com/sites/susanadams/2014/06/16/the-highest-paid-ceos-are-the-worst-performers-new-study-says/
The More A Company Pays Its CEO, The Worse Its Shareholders Do
ReplyDeleteOver a third of the best-paid chief executives of the past 20 years have ended up getting bailed out by taxpayers, booted from their posts by the board, or busted for fraud. Several of the men who held key CEO jobs in the run-up to the financial crisis walked away with fortunes that measure in the hundreds of millions of dollars.
http://thinkprogress.org/economy/2014/06/17/3449737/ceo-pay-inverse-performance/
Six in 10 Obamacare customers were previously uninsured and other fun Obamacare facts
ReplyDeletehttp://www.dailykos.com/story/2014/06/19/1308156/-Six-in-ten-Obamacare-customers-were-previously-uninsured-and-other-fun-Obamacare-facts
For the great enemy of the truth is very often not the lie—deliberate, contrived, and dishonest—but the myth—persistent, persuasive, and unrealistic. Too often we hold fast to the cliches of our forebears. We subject all facts to a prefabricated set of interpretations. We enjoy the comfort of opinion without the discomfort of thought.
ReplyDeleteMythology distracts us everywhere—in government as in business, in politics as in economics, in foreign affairs as in domestic affairs.
John F. Kennedy
Corporate plans are not based on a political confidence in party leaders but on an economic confidence in the Nation's ability to invest and produce and consume. Business had full confidence in the administrations in power in 1929, 1954, 1958, and 1960—but this was not enough to prevent recession when business lacked full confidence in the economy. What matters is the capacity of the Nation as a whole to deal with its economic problems and its opportunities.
ReplyDeleteJFK
http://millercenter.org/president/speeches/detail/3370