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CEO Pay, Is It Really Linked To Stock Performance

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Rupert Hargreaves
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At the end of July, the Wall Street Journal published the findings from a new study from corporate governance research firm MSCI, which alluded to the fact that the best-paid CEOs run some of the worst performing companies and vice versa.

 

MSCI’s study examined the pay of some 800 CEOs at 429 large and mid-sized US companies during the decade ending in 2014. The study also considered in the total shareholder return of the same companies over the period in question.

MSCI found that $100 invested in the 20% of companies with the highest paid CEOs would have grown to $265 over the decade studied. However, the same amount invested in the companies with the lowest paid CEOs would have...

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha