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The Huffington Post Canada: Highest paid CEOs’ companies perform worse that industry average


The new study says that companies who pay more to their CEOs not necessarily do very well. The research co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School, and colleagues at the Universities of Utah and Purdue, found that ‘companies that pay their CEOs in the top ten per cent within their industry see returns that are typically 8 per cent lower than the overall industry for three years from the time the large pay package was awarded.’

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