Company Success Not a Factor in CEO Pay Ratio.

Position:BOARD BOOK: WHAT'S ON THE AGENDA?
 
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Advocates of the CEO pay ratio disclosure seem to be of the mindset that the ratio correlates with company performance. However, one study finds no such correlation. In fact, the lowest average three-year total shareholder return (TSR) was associated with the lowest pay ratio band. While the highest average three-year TSR correlated with the band of ratios between 35 and 74, it dropped off as the...

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