Executive Pay And Company Performance Barely Linked

Study shows paying big company bosses more doesn’t lead to increased profit

CEO pay has skyrocketed in much of the western world. It’s not unheard of for CEO’s of the biggest globalist corporations to make 100, 200, or even 300 times what the average employee makes in year.

The justification given for this massive pay disparity is that it leads to better performance. But now, a new study from the UK shows there is almost no link between CEO pay and company performance.

As reported in the Financial Times, Although big company bosses enjoyed pay rises of more than 80 per cent in a decade, performance as measured by economic returns on invested capital was less than 1 per cent over the period, the paper by Lancaster University Management School says.

The creators of the report said, “Our findings suggest a material disconnect between pay and fundamental value generation for, and returns to, capital providers.”

When the economy is growing, wages are rising, and people are getting richer, there isn’t much anger about highly paid executives. After all, if a company is doing well, the people heading that company – as well as all employees – deserve to be rewarded financially.

Rigged System

But the growing disconnect between performance and pay is a sign the system is increasingly broken. Now it seems more about those who play the inside game and get themselves in the right spot, instead of true talent and merit rising to the top and being rewarded.

It’s a rigged system, rigged worst of all by the banks – who paid their CEO’s massive bonuses after they nearly destroyed the global economy.

We need to wake up if we want true change.

Spencer Fernando

Photo – Twitter