September 29, 2017
“Non-GAAP” CEOs Make More (But They Shouldn’t)
– Broc Romanek
This FEI blog discusses this recent study that shows that CEOs at companies that rely on non-GAAP metrics tend to earn higher compensation. The upshot is that CEOs of S&P 500 companies that made large positive adjustments to non-GAAP earnings between 2010 and 2015 got paid $2.7 million (or 23% more) on average more than their expected annual compensation if GAAP numbers were used…
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