Opinion | C.E.O. Pay, America’s Economic ‘Miracle’ – The New York Times

In an op-ed in the New York Times, Bill Saporito writes: There are some good reasons C.E.O. pay has risen. Large companies keep getting bigger, and in some ways more complex. Health care, pharmaceutical and media companies have been making sizable acquisitions as these industries continue to consolidate. Disney, for instance, just bought a large…

Big Companies Pay CEOs for Good Performance—and Bad – WSJ

The mechanics of chief-executive pay have grown ever more complex, but the rules remain simple: Strong performers get a raise. So do most of the rest. For the fourth year straight, the biggest U.S. companies set CEO pay records in 2018, a Wall Street Journal analysis found, even as a majority delivered negative stock price…

VEA Vice Chair Nell Minow on CEO Pay: Michael Lewis Podcast

We highly recommend Against the Rules, the superb new podcast series from Michael Lewis (author of The Big Short, The Fifth Risk, Liar’s Poker, and much more) that examines the decline of “refs,” the independent arbiter formerly relied on but now losing credibility, from basketball to art to, yes CEO pay.  VEA Vice Chair Nell…

CEO Stock Options Drive Income Smoothing

[A] new study finds that to a large extent, [any benefit from income “smoothing”] actually depends on the relative volume of stock and stock options held by the CEO. Prior research has offered two competing explanations for corporate income smoothing, notes the study, “Managerial Equity Holdings and Income-Smoothing Behavior,” published in the spring issue of…

Here’s one way to tell if a company is overpaying its CEO – MarketWatch

VEA Vice Chair Nell Minow is quoted in this article about use of non-standard financial reporting to inflate CEO compensation: U.S. companies that use nonstandard numbers to calculate executive compensation are overpaying their top managers, according to a new research report. The working paper, “High Non-GAAP Earnings Predict Abnormally High CEO Pay,” by Nicholas Guest…