As You Sow+Image
Assuming CEO pay is based on performance and therefore related to total shareholder return (TSR), how much should the company be paying their Chief Executive Officer?
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As You Sow+Image
California (United States)
Metric Type
Company Groups
Value Type
Research Policy
Community Assessed
Report Type
Research Document

Although we, like many other analysts, find very weak links between pay amounts and company financial performance, the usual justification for high executive pay is that they are connected to enhanced profits and above-average capital appreciation for the shareholders who foot the bill. If we grant the assumption that pay should be determined by performance, and then use a basic statistical technique to map actual performance outcomes to predicted levels of pay relative to those outcomes, we can then see how much the CEO pay package exceeded such a prediction.

Source: As You Sow