First, thanks to D-Lo for forwarding this article to me. The gist of this article is CEOs are overpaid. The connection between pay and performance just isn’t there. In fact, the opposite relation is observed. Companies with lower paid CEOs perform better than companies with higher paid CEOs. All we need now is a nice list of those companies so we know where to allocate our investment dollars and perhaps our purchases of goods and services.
Another study should be done showing how others suffered while CEO pay increases. For example, how many Yahoo employees lost their jobs while Mayer was making her $100 million? How about companies with highly paid CEOs and stock declines? Did those companies also layoff thousands of employees while maintaining 7, 8, and 9 figure pay packages for executives?
Now, let’s contemplate how spending nearly $5 billion for Yahoo makes sense for Verizon and its shareholders…