Dell, Eli Lilly and Ford are among the 12 worst offenders of so-called "pay for failure" for their chief executives, a study released on Monday has found.
CEOs at these companies have all received total pay of more than $15 million over the last two fiscal years, according to governance research firm The Corporate Library. At the same time, the report said, the companies' total shareholder returns have fallen over the last five years and performance against peers slumped over the same period.
"It continues to be the case that far too much executive compensation is delivered without any link to performance at all," said the report, written by Corporate Library senior research associate Paul Hodgson.
I recommend reading the article in full, especially to see the responses of the companies that were willing to make a public response on this issue.
1 comment:
And, on a similar note...
If our nation's sports figures and coaches were similarly compensated, based solely on performance, it would be a more sensible world out there.
Pay should always be based on some sort of measurable performance. . .
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