CEOs and their Indian rope trick; Executive pay.(Executive performance and executive pay)(Chief executive officers)
Economist (US), The, December, 2004
The link between pay and performance is weak
EXECUTIVE pay should reflect performance, right? But does it? A recent survey by the Hay Group, a consultancy, puts the average basic annual salary of the chief executive of a large American firm at $1m. But his total remuneration is more like $5m. Some of the extra comes in perks, but most is "variable pay"--bonuses and stock options that supposedly relate to the performance of his firm. That high level of variable pay should lead to sizeable fluctuations in total remuneration, as good years follow bad, and vice-versa. Yet for a while there has been little sign of that.
Performance-related pay is meant to align executives' rewards with those of shareholders. And indeed top executives' remuneration...
Most Recent Business Articles
- Multiple criteria evaluation and optimization of transportation systems
- Multi-criteria analysis procedure for sustainable mobility evaluation in urban areas
- A two-leveled multi-objective symbiotic evolutionary algorithm for the hub and spoke location problem
- Multi-criteria analysis for evaluating the impacts of intelligent speed adaptation
- The development of Taiwan arterial traffic-adaptive signal control system and its field test: a Taiwan experience
Most Recent Business Publications
Most Popular Business Articles
- 7 tips for effective listening: productive listening does not occur naturally. It requires hard work and practice - Back To Basics - effective listening is a crucial skill for internal auditors
- FAS 109: a primer for non-accountants - Financial Accounting Standards Board's "Statement 109: Accounting for Income Taxes"
- LIFO vs. FIFO: a return to the basics
- Design a commission plan that drives sales - Sales Commissions
- Too Young to Rent a Car? - 25-years-old the minimum age for car renting - Brief Article
