Executive compensation clawback policies continue to grow in popularity. Although the Securities and Exchange Commission (SEC) has not yet finalized its rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) that will require publicly-traded companies to adopt compensation recovery policies, many companies have now voluntarily adopted clawback policies. More than 90 of…
Tag: CEOs pay
Executive Pay for Luck: New Evidence Over the Last 20 Years
Per the Wall Street Journal (May 17, 2019), when it comes to CEO compensation at big companies, “the best performers got big pay and big raises […], but the laggards didn’t do much worse.” The data underlying the central argument of that article pointed to a year-on-year rise in median compensation for S&P 500 CEOs…
Study: CEO Pay Rise is Attributable to Company Size
A new study concludes that the rise in CEO pay is attributable to market capitalization. Of course, it is supposed to be attributable to performance. So what we learn from this is that there is a perverse incentive for CEOs to make companies bigger instead of better. In recent decades at least, the size of…
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