Saturday, December 26, 2009

The Intelligent Investor: Golden Pay for CEOs Could Be Bad for Stocks - WSJ.com

The Intelligent Investor: Golden Pay for CEOs Could Be Bad for Stocks - WSJ.com:
"The first study, led by corporate-governance expert Lucian Bebchuk of Harvard Law School, looked at more than 2,000 companies to see what share of the total compensation earned by the top five executives went to the CEO. The researchers call this number—which averages about 35%—the 'CEO pay slice.'

It turns out that the bigger the CEO's slice of the pie, the lower the company's future profitability and market valuation...."