Are CEOs Overhyped and Overpaid?

Harvard Business

How much do CEOs actually matter? Although such sentiments may not apply to most CEOs, even the anonymous CEO still benefits from the impulse: Most CEOs worldwide earn between 50 and 100 times more than the average worker. The CEO-to-worker pay ratio in America is even bigger, at 350:1. It is therefore reasonable to ask whether CEOs are actually worth it. To answer this question, I considered several scientific studies of CEO impact.

CEO 47

Unexpected Leadership Lessons that Mobsters Can Teach Lawful Leaders

Leading Blog

He is a globally recognized microeconomist and author of seven books and has taught organizational economics, accounting, and finance at the University of Rochester’s Simon Business School for more than forty years.

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Performance-Based Pay for Executives Still Works

Harvard Business Review

And while it’s true, as they write, that “large bonuses and stock options have been held responsible for overly risky behavior and short-term strategies,” I know of no peer-reviewed evidence that the crisis was actually due to poor incentives, and their article cites none. Given the current levels of equity compensation, this would cost the average CEO $4.5 Performance-based pay has come under fire since the global financial crisis.

Are Business Schools Creating Higher-Ambition Leaders?

Harvard Business Review

Even though I'm now retired from the faculty of Harvard Business School, I still have the opportunity as a consultant to learn from the CEOs I work with — especially those who believe a company should create both economic and social value, a dual-purpose that benefits not only investors but also employees, customers, suppliers, and society at large. Higher-ambition CEOs know who they are, and how they lead and run their companies reflects their personal values and principles.