We used to think that the Wall Street Journal advocates for investors. After all, beginning with the name of the newspaper, it first and foremost reports on subjects of interest to the investment community. But, maybe not so much anymore.
Yesterday it ran an extensive feature on CEO pay, "CEO Pay Moves With Corporate Results". Findings from their reporting include:
❖"Chief executives increasingly are being paid based on their companies' financial results and share prices..."
❖"CEO pay during 2011 was more correlated to how well companies fared in the stock market..."
Our review of the same WSJ data shows virtually no connection between CEO pay and company performance. See our current blog post for our take on their analysis.
|