CEO Pay and Performance Often Don’t Match Up
By: Wall Street Journal
May 14, 2018
The best-paid CEOs don’t necessarily run the best-performing companies.
Corporate boards have tried for years to tie chief executive compensation to the results they deliver. The better the company and its shareholders do, the more the top boss should be paid, or so the pay-for-performance mantra goes. In reality, CEO pay and performance often don’t match up, and 2017 was no exception.
Among S&P 500 CEOs who got raises last year, the 10% who received the biggest pay increases scored—as a group—in the middle of the pack in terms of total shareholder return, according to a Wall Street Journal analysis of data from MyLogIQ LLC and Institutional Shareholder Services.
Similarly, the 10% of companies posting the best total returns to shareholders scored in the middle of the pack in terms of CEO pay, the data show.
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