Study Shows That America’s Highest-Paid CEOs Run the Worst-Performing Companies

Aug 9, 2016 at 2:11 pm |

The Fight Against High CEO Salaries

What’s your office like? Do you work for a startup or a mega-corporation? Depending on your industry and office culture, you may feel like work is your second home, or otherwise just the place you spend your dreary 9—5 (or longer) weekdays. So much of this has to do with office leadership.

Today, many companies strive for a more horizontal structure instead of a convoluted or vertical chain of command. Moving towards more openness and equality also leads to more accountability so that people take responsibility for their errors and successes, helping everybody improve along the way.

Keeping bosses, managers, and executives in open, constant communication invaluably changes the atmosphere of a given company. Accessibility to people at the executive level, even from lower-level and new employees, dramatically helps make all workers feel like significant members of the community. Instead of small employees working for a big boss, this openness makes everyone feel as though they are working towards the same goals, as well they should.

In fact, there’s more research today about how antiquated systems run by detached CEOs are failing, and the proof is all in not only how involved they are, but in how much money they’re making.

ceo salary ceo holding pyramid

Credit: Jirsak/Shutterstock

Is this correlation or mere coincidence?

“Even after adjusting for company size and sector, companies with lower total summary CEO pay levels more consistently displayed higher long-term investment returns.”