FYI: In 1990, Harvard Business School professor Michael Jensen co-wrote an article making the then-bold claim that CEO compensation should be tied to stock price performance. The point, Jensen and his co-author argued, was to better align incentives and ensure that corporations were able to attract “the best and brightest individuals to careers in corporate management.”
In short: Pay up, or lose out.
Regards,
Ted
https://www.institutionalinvestor.com/article/b1db3jy3201d38/The-MBA-Myth-and-the-Cult-of-the-CEO
