Firms With Highest CEO Pay Ratios Underperform With More Risk
A new study found that increasing CEO pay improves performance and reduces risk, but only up to a certain point, and then it actually becomes harmful
In September 2013, the SEC voted to require most companies to start disclosing their CEO pay ratio – the amount the CEO gets paid relative to the average employee. The rule didn’t have a specific policy objective, but greater transparency was in-line with other shareholder friendly measures such . . .
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