The Advisors' Blog

– Broc Romanek, CompensationStandards.com

Here’s a 28-page deck from Mark Van Clieaf & company that provides the analysis for this Sunday’s NY Times column, which reveals that say-on-pay support doesn’t really distinguish between those boards that really do pay for performance – and those that don’t. Here’s the key sentence from the column:

Among the top 200 companies, the study concluded that 74 overpaid their chief executives in 2015 based on five years of underperformance in return on capital. The total overpayment last year to the C.E.O.s at these companies, the study found, was $835 million.

Also check out this database – which is in beta form – where you can look up a company and its ROCC performance relative to peers over 5 years.

These are empirically driven insights & rankings of the most overpaid – and underpaid – CEOs based on analytics related to 5-yr relative returns on corporate capital & company size. I don’t believe this kind of thing has been done before – it goes beyond the pay listings published annually by other media outlets.