Companies do better when CEO pay dwarfs average worker, study finds
Published: July 24, 2017 5:04 p.m. ET
By
Steve
Goldstein
D.C. bureau chief
As Democrats launch their midterm agenda focused in large part on reigning in corporate excess, here’s a study with a decidedly different take.
A paper to be presented at the American Accounting Association annual meeting finds that the higher the gap is between CEO pay and that of the median worker, the better the company performance.
The researchers examined CEO pay ratios for 817 firms, whose CEOs had an average annual compensation of $7.8 million and whose workers’ mean pay was about $74,000.
http://www.marketwatch.com/story/the-bigger-the-ceo-to-worker-pay-gap-the-better-the-performance-study-finds-2017-07-24
