> Also are you honestly counting CEOs who get millions in stock and $1 pay as... just getting $1 in pay? How stupid are you.
That's not what's implied by the article: "big chunks of the compensation packages for the highest-paid CEOs come in the form of stock and stock options."
Edit: From the paper....
"To better understand the drivers of the pay effect, we decompose pay into its major components. We find that most pay components are negatively related to future abnormal returns earned by these firms, with the strongest components being the value of options granted and long-term incentive payouts. However when we add other control variables that have been shown to explain the cross-section of returns, the components largely lose their significance, with the exception of the value of options granted, which emerges as the main driver of the pay effect."
That's not what's implied by the article: "big chunks of the compensation packages for the highest-paid CEOs come in the form of stock and stock options."
Edit: From the paper....
"To better understand the drivers of the pay effect, we decompose pay into its major components. We find that most pay components are negatively related to future abnormal returns earned by these firms, with the strongest components being the value of options granted and long-term incentive payouts. However when we add other control variables that have been shown to explain the cross-section of returns, the components largely lose their significance, with the exception of the value of options granted, which emerges as the main driver of the pay effect."