The Truth About CEO Compensation and Stock Prices | Exploring Markets

The Truth About CEO Compensation and Stock Prices



Here is a chart Bloomberg BusinessWeek. At first glance, it may appear to be rather confusing. But it is not. It actually shows something quite interesting. It compares CEO compensation to the stock price of that CEO's company. The chart shows that there is, pretty much, no relation between the two. 

Take a close look. The X axis is CEO pay. The Y axis is stock price performance.

Fascinating, right? 

The Pay-for-Performance Myth by By Eric Chemi and Ariana Giorgi in Bloomberg BusinessWeek