For the vast majority of S&P 1500 companies, there is a major disconnect between corporate operating performance, shareholder value and incentive plans for executives. New research details how an over-reliance on traditional short-term accounting metrics and total shareholder return obscures a line of sight to the underlying drivers of economic performance. As a result, economic performance explains only 12% of variance in chief executive officer (CEO) compensation.
In The News
- What’s a CEO Really Worth?, The Wall Street Journal