Lavish CEO pay doesn’t work as intended

The arms race in CEO pay doesn’t help performance or retention, according to a new study. Outsized CEO pay has been a bone of contention for shareholders and a flashpoint for public discontent, but was always justified with the conventional wisdom that if a company doesn’t pay its top brass top dollar, they’ll go somewhere where […]

Jaclyn Densley 28 September, 2012

The arms race in CEO pay doesn’t help performance or retention, according to a new study.

Outsized CEO pay has been a bone of contention for shareholders and a flashpoint for public discontent, but was always justified with the conventional wisdom that if a company doesn’t pay its top brass top dollar, they’ll go somewhere where they can earn more.

Martha C. White tells The Bottom Line why conventional thinking doesn’t stack up.