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View Diary: Three in four Americans living paycheck to paycheck while CEO-to-peons pay ratio now at 273-to-1 (142 comments)

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  •  That's the problem (2+ / 0-)
    Recommended by:
    tardis10, Youffraita

    Shareholders don't have much say anymore. Boards do and they are all greasing each other. So the guy who led the company into bankruptcy and non-existence gets a lavish golden parachute and the workers who had no input get the shaft.

    Ed FitzGerald for governor Of Ohio. Women's lives depend on it. http://www.edfitzgeraldforohio.com/

    by anastasia p on Fri Jun 28, 2013 at 02:32:18 PM PDT

    [ Parent ]

    •  Here's a little abstract for ya:) (1+ / 0-)
      Recommended by:
      Youffraita
      We find evidence that CEO pay is negatively related to future stock returns for periods up to three years after sorting on pay. For example, firms that pay their CEOs in the top ten percent of excess pay earn negative abnormal returns over the next three years of approximately -8%. The effect is stronger for CEOs who receive higher incentive pay relative to their peers. Our results appear to be driven by high-pay induced CEO overconfidence that leads to shareholder wealth losses from activities such as overinvestment and value-destroying mergers and acquisitions.
      http://papers.ssrn.com/...

      We are a long ways from seeing an end to this nonsense but every little bit of data helps.

      "George RR Martin is not your bitch" ~~ Neil Gaiman

      by tardis10 on Fri Jun 28, 2013 at 03:20:55 PM PDT

      [ Parent ]

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