Top paid CEOs often have mediocre performances — 5 key notes

MSCI found CEOs with the highest compensation may demonstrate poor performance, according to Fortune.

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The research firm analyzed 800 CEOs and their performance results.

Here are five key notes:

1. The analysis found the highest paid CEOs had a 40 percent worse performance than lower paid CEOs.

2. MSCI found the results did not vary based on the type of company.

3. Equity incentives comprise at least 70 percent of total CEO pay in the United States.

4. The study found if an investor put $100 dollars into 20 percent of companies with the highest-paid CEOs, their investment would grow to $265 over 10 years.

5. However, if that same investor put $100 into companies with the lowest-paid CEOs, that investment would grow to $367 in that time frame.

“We found little evidence to show a link between the large proportion of pay that such awards represent and long-term company stock performance. In fact, even after adjusting for company size and sector, companies with lower total summary CEO pay levels more consistently displayed higher long-term investment returns,” the researchers concluded.

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