Performance Executive compensation in the United States
(source: reflections on ceo compensation john c. bogle, academy of management, may 2008, p.21)
one factor not explain ceo pay growth ceo productivity growth if productivity measured earnings performance. measuring average pay of ceos 1980 2004, vanguard mutual fund founder john bogle found grew 3 times fast corporations ceos ran—8.5 percent/year compared 2.9 percent/year. whether ceo pay has followed stock market more closely disputed. 1 calculation 1 executive compensation consultant (michael dennis graham) found extremely high correlation between ceo pay , stock market prices between 1973 , 2003, while more recent study liberal economic policy institute found nominal ceo compensation growth (725 percent) substantially greater stock market growth 1978 2011.
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