Sunday, May 5, 2013

Highest paid CEO has the lowest performance


CEO pay is outrageous in the US? It seems like it is true. New law requires US companies to report their CEO compensations and the average workers' pay. BusinessWeek has the following table for ratio of CEO pay to the average workers' pay. The average ratio for the top "lucky" CEOs is 495 and the average ratio for SP 500 companies is 204. The #1 CEO is Ronald Johnson from PC Penney with a staggering ratio of 1795. You will love to read the following information for Mr. Johnson. He was hired in late 2011 from Apple and the stock price of PC Penney plummeted since he was hired. He then was fired one month ago. The highest paid CEO has the lowest performance!

No comments:

Post a Comment