The pay that CEOs and other executives receive is not aligned well with company performance, primarily because companies and boards lack the tools to accurately measure how much success executives are actually having in their jobs, a new study concludes.
The new report, from the nonprofit Investor Responsibility Research Center Institute and consultancy Organizational Capital Partners, set out to determine how well executive compensation among S&P 1500 companies was aligned with company performance and shareholder returns. “The expectation was that the analysis could usefully serve as a marker in the ground,” the firms wrote in its report, “and yet what it uncovered was unexpected.”
IRRCi is a research firm that was formed after its parent was sold to Institutional Shareholder Services. OCP is a corporate consultancy operating in the U.S. and Europe. You can read the full report here.
No comments:
Post a Comment