Abstract
A recent survey (Sibson, 1990) of 644 companies found that only 14 percent bother to evaluate their CEO’s performance via any systematic process. Evidence also suggests that, for CEOs, negative consequences (i.e., dismissal, drastically lower pay) associated with poor performance are almost nonexistent (Jensen and Murphy, 1990). Finally, the relationship between CEO pay and company performance “is weakening” (Crystal, 1990; p. 94). Fifty five percent of the variance in CEO pay is not accounted for by company performance, size, business risk, company geographic location, or even CEO tenure.
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Schneier, C.E., Beatty, R.W., Shaw, D.G. (1991). Why Measure the CEO’s Performance. In: Niehaus, R.J., Price, K.F. (eds) Bottom Line Results from Strategic Human Resource Planning. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-9539-4_19
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DOI: https://doi.org/10.1007/978-1-4757-9539-4_19
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