The one-third highest performing companies paid their chief executives an average of $7.12 million–while the bottom third paid their CEOs $9.29 million. The study compared direct compensation, which includes base salary, bonus and value of stock grants. Why the disconnect? Jack Dolmat-Connell, founder and president of the firm, cites the phenomenon of ‘chasing the median’: Companies benchmark their executive compensation figures on peers instead of looking at factors related to performance.
This can’t be that surprising. I personally know many people who do nothing and get paid for it, and others who work far too hard and earn less. Nice guys finish last? Probably.