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The Nasty Truth about CEO Pay

Harvard Business Review

Yes, the market is rebounding; the S&P 500 was up 13% over 2010. The fact is, because of the structure of their compensation, CEOs are rewarded for share price volatility not performance. Using the same indexing approach, the current stock price would be $94. Stock Price. 04 Jan 2010. $80. 04 Jan 2010. $80.