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Thread: Japan airlines CEO makes 90,000USD eats takes city bus to work
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Old Feb 21, 2015 | 3:44 pm
  #82  
cbn42
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Originally Posted by SeriouslyLost
And yet the research literature shows that they rarely do. In fact, CEO pay/company performance is inversely correlated.
As often stated, correlation does not prove causation. Being the CEO of a failing company is a much more stressful, high pressure job, and requires bigger decisions to be made with a potentially much greater impact. Being the CEO of a company that is doing well is much easier, and therefore there will be more people wanting such a job, driving the salary down. The CEO is paid more because the company is doing poorly, not vice versa.
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