Business, Management and Accounting
4 years ago

CEO pay linked to firm performance, soaring since 1980 due to stock options.

Are CEOs Really Paid Like Bureaucrats?
Brian J. Hall, Jeffrey B. Liebman

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CEOs in large U.S. companies are paid based on how well their companies perform. The main reason for this is changes in the value of the CEOs' stock and stock options. CEO pay has increased a lot since 1980, especially because of more stock option grants.