The latest reporting, opinion and research on executive compensation. We don’t necessarily agree with it all, but we provide it here for consideration.
Week of October 17, 2016Week of
October 10, 2016
A new study from Equilar notes that 2015 saw lower cash bonuses paid out to CEOs even though there was a rise in median target payouts. The author postulates that this decrease may have been caused by economic uncertainty as 2015 experienced slower, "revenue, EBIT, and TSR growth." A specialist at Equilar asserts this may be a good thing, as it may indicate that pay for performance models are accomplishing their goals in practice and rewarding for real world performance. Read more
The Harvard Business Review (HBR) publishes annually its list of the best-performing CEOs in the world. The ranking methodology evaluates CEOs on the results produced over their entire tenures. According to HBR, 2015 turnover among global CEOs reached a record rate of 17%, which may be one of the drivers behind CEO shortsightedness. However, the rankings show that, on average, the world's 100 best CEOs have been on the job for 17 years and have generated an annual return of 20.2%. Read more
Compensation Trends + Developments
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