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Friday Tidbit: Executive Salary, Incentives & Tenure

• Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner

Is it theft or value for shareholders to pay a Chief Executive Officer (CEO) a $26m annual salary?

Is it the business or the CEO that earns the return for shareholders?

These are tough questions because there are examples where the CEO has completely changed the fortunes of the business such as Steve Jobs at Apple Inc.

We have been grappling with this question of how much is too much since 1991 and we are still no closer to an answer.

Click to read ACSI report on CEO Pay.

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