{"id":185881,"date":"2014-07-25T19:01:00","date_gmt":"2014-07-26T00:01:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2014\/07\/25\/todays-episode-of-not-surprised-at-all-ceo-pay-edition\/"},"modified":"2014-07-25T19:01:00","modified_gmt":"2014-07-26T00:01:00","slug":"todays-episode-of-not-surprised-at-all-ceo-pay-edition","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2014\/07\/25\/todays-episode-of-not-surprised-at-all-ceo-pay-edition\/","title":{"rendered":"Today&#8217;s Episode of Not Surprised at All:  CEO Pay Edition"},"content":{"rendered":"<p><a href=\"http:\/\/i.imgur.com\/8SUC5GW.png\" rel=\"lytebox\"><img decoding=\"async\" src=\"http:\/\/i.imgur.com\/8SUC5GW.png\" style=\"float: right; margin: 0px 0px 10px 10px;\" width=\"390\" \/><\/a>It turns out that there is <a href=\"http:\/\/www.businessweek.com\/articles\/2014-07-22\/for-ceos-correlation-between-pay-and-stock-performance-is-pretty-random\">No relationship whatsoever between a CEO pay and performance<\/a>:<\/p>\n<blockquote><p><span style=\"color: blue;\">With all the public chatter about exorbitant executive compensation and income inequality, it\u2019s useful to look at the relationship between chief executive officer pay and corporate performance. Typically, when the subject of their big pay packages arises, CEOs\u2014usually through their spokespeople\u2014say they are paid for performance. Does data back that up?<\/span><br \/><span style=\"color: blue;\"><br \/><\/span><span style=\"color: blue;\">An analysis of compensation data publicly released by Equilar shows little correlation between CEO pay and company performance. Equilar ranked the salaries of 200 highly paid CEOs. When compared to metrics such as revenue, profitability, and stock return, the scattering of data looks pretty random, as though performance doesn\u2019t matter. The comparison makes it look as if there is <b>zero<\/b> relationship between pay and performance.<\/span><\/p><\/blockquote>\n<p>Actually, it&#8217;s  on the order of 1%, and certainly not worth it. (Click on the image for a better view of the trend line)<\/p>\n<p>The cult of the overpaid CEO has no basis in reality.<\/p>\n<p>It&#8217;s&nbsp; all a game where one hand washes the other. <\/p>\n<p>Hoocoodanode?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It turns out that there is No relationship whatsoever between a CEO pay and performance: With all the public chatter about exorbitant executive compensation and income inequality, it\u2019s useful to look at the relationship between chief executive officer pay and corporate performance. Typically, when the subject of their big pay packages arises, CEOs\u2014usually through their &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1005,970,975,1143,992,982],"tags":[],"class_list":["post-185881","post","type-post","status-publish","format-standard","hentry","category-business","category-corruption","category-employment","category-inequality","category-statistics","category-stupid"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/185881"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=185881"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/185881\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=185881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=185881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=185881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}