Research: Index Funds Are Fueling Out-of-Whack CEO Pay Packages
OCTOBER 18, 2016
The pay of top managers has risen faster than those of other star earners. Top management compensation packages guarantee a high level of pay, but are often only weakly linked to the performance of the firm relative to its industry competitors. Nowadays, the same handful of large, diversified asset management companies controls a significant proportion of US corporations. In other words, these managers are rewarded less for outperforming their competitors.