New research shows that bonuses backfire on companies, even blocking common sense. A summary.
Mark Van Clieaf asks, “What work are we paying CEOs to do?”
Mark Van Clieaf is all for paying someone for what they are doing but he believes that CEOs are delivering only short-term value, at the expense of the company’s long term viability. And, if his numbers are correct, most US CEOs aren’t even delivering short term value: their companies are not making more than they are spending.
Executive Compensation May Be Out of Whack Entirely For What We Get
Mark Van Clieaf recently sent me an article he’s written (“Executive Accountability and Excessive Compensation: A New Test For Director Liability”). He and his colleagues have done a study of 700 Fortune 500 companies — representing 80% of the US stock market — and found some troubling things about CEO compensation and even the entire executive team and Board. It …