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U.S. Securities and Exchange Commission
Right way to measure CEO pay has nothing to do with 'shareholder value'
Right way to measure CEO pay has nothing to do with 'shareholder value'

The latest initiative by the Securities and Exchange Commission to give shareholders more information about their CEOs' pay has revived an old question: What's the right way to judge if a CEO is making too much? The SEC's proposal, which is now open for public comment, accepts as a given that the best metric is to compare top executives' compensation to shareholder return — that is, stock price appreciation plus dividends. Its goal is to give shareholders a better picture of that relationship: clearer and more thorough disclosure in the annual proxy statement of what the chief executive earns, including pension and stock awards; and more data...

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