Eleven companies that authorized a total of $865 million in pay to CEOs who led their companies to a cumulative loss<\/strong> in shareholder value<\/em> of $640 billion last year.<\/p><\/blockquote>\nOuch! Those companies may want to think about looking for different leadership and restructure the incentives to be more directly tied to overall corporate performance.<\/p>\n","protected":false},"excerpt":{"rendered":"
At Select Metrix, we constantly preach that compensation plans should be, in part, tied to an individual’s performance. So when I was reading through my newsletters and RSS feeds, I was amazed to find stats from several different articles and feeds. First off, CEO turnover is up. The numbers show that CEO turnover for 2005 was 15% compared to 9% just 10 years earlier. Pay is also up, this could be due to the fact that more CEOs are moving around. In 2004 CEO pay increased 14.5% and in 2005 it increased 7.1% with the median salary and bonus coming in at $2,408,665. With this trend, The Corporate Library (paid… Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[20,5],"tags":[],"class_list":["post-345","post","type-post","status-publish","format-standard","hentry","category-compensation","category-trends"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p5Oho-5z","jetpack-related-posts":[{"id":1452,"url":"http:\/\/selectmetrix.com\/blogs\/2008\/03\/ceos-are-not-overpaid\/","url_meta":{"origin":345,"position":0},"title":"CEO’s Are Not Overpaid","author":"Derrick Moe","date":"March 4, 2008","format":false,"excerpt":"How is that for a title?\u00a0 Before I get flamed on this topic, let me pull some excerpts from a Human Resource Executive Online article (emphasis mine): A recent study conducted by DolmatConnell & Partners debunks the myth of runaway executive pay. The findings of the study tell a much\u2026","rel":"","context":"In "Compensation"","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":410,"url":"http:\/\/selectmetrix.com\/blogs\/2006\/11\/ceo-turnover\/","url_meta":{"origin":345,"position":1},"title":"CEO Turnover","author":"Derrick Moe","date":"November 1, 2006","format":false,"excerpt":"We first posted about CEO turnover in this post. Now BusinessWeek comes along with an article titled The Great CEO Exodus. CEO's get a bad rap about their compensation packages, but it is not an easy job. Now consider the pressure being exerted on these leaders: Not so long ago,\u2026","rel":"","context":"In "Trends"","block_context":{"text":"Trends","link":"http:\/\/selectmetrix.com\/blogs\/category\/hiring\/trends\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":412,"url":"http:\/\/selectmetrix.com\/blogs\/2006\/11\/the-cure-for-ceo-turnover\/","url_meta":{"origin":345,"position":2},"title":"The Cure for CEO Turnover","author":"Derrick Moe","date":"November 1, 2006","format":false,"excerpt":"Honestly, I just came across this article - Women CEOs Experience Longer Tenures, Faster Growth - as a follow up to my previous post. This study is from a limited sample of Massachusetts-based companies with an average size of $54M\/year revenue and 120 employees. Not huge, but sizeable companies nonetheless.\u2026","rel":"","context":"In "Trends"","block_context":{"text":"Trends","link":"http:\/\/selectmetrix.com\/blogs\/category\/hiring\/trends\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2516,"url":"http:\/\/selectmetrix.com\/blogs\/2012\/08\/overpaid-jobs\/","url_meta":{"origin":345,"position":3},"title":"Overpaid Jobs?","author":"Derrick Moe","date":"August 16, 2012","format":false,"excerpt":"I grow tired of these comparison articles that look at pay for positions based on the median.\u00a0 It is almost impossible to compare roles across companies, markets, industries, etc.\u00a0 However, there is always one position within a company that takes the main blow\u2026CEO.\u00a0 I\u2019ve been fortunate to work with quite\u2026","rel":"","context":"In "Compensation"","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":631,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/02\/the-underpaid-ceo\/","url_meta":{"origin":345,"position":4},"title":"The Underpaid CEO","author":"Derrick Moe","date":"February 3, 2007","format":false,"excerpt":"I am all for people making as much as they can in their careers which is why I do not understand the emotional attachment to CEO pay. If those CEOs can make that kind of money, more power to them. It doesn't bother me that Bob Nardelli made big money\u2026","rel":"","context":"In "Compensation"","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":461,"url":"http:\/\/selectmetrix.com\/blogs\/2006\/11\/ceos-and-shareholder-value\/","url_meta":{"origin":345,"position":5},"title":"CEO’s and Shareholder Value","author":"Derrick Moe","date":"November 28, 2006","format":false,"excerpt":"A quick story from the Pioneer Press - Early exit cuts Stroucken pay package. The departing CEO of H.B. Fuller located north of St. Paul is taking a compensation package with him worth $18.5 million. The article simply states: The news release noted Stroucken is receiving $4 million less than\u2026","rel":"","context":"In "Compensation"","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/comments?post=345"}],"version-history":[{"count":0,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/345\/revisions"}],"wp:attachment":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/media?parent=345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/categories?post=345"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/tags?post=345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}