Pay-performance link works, study finds


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Published in Pensions & Investments November 12, 2009 by Barry B. Burr

The value of CEOs’ stock ownership in their own companies and their outstanding equity awards and bonus payouts fell 42% on average in 2008, larger than the median 34% decline experienced by a typical shareholder at those companies, according to a study released today by Watson Wyatt Worldwide, a consulting firm.
The 967 CEOs analyzed in the study about their company stock lost a combined $53.7 billion on that stock — roughly $55.5 million for the average CEO — in 2008, compared with $3.2 trillion for shareholders of the same set of companies, the study said.

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