Are CEO Pay and Performance Linked?

Since the 1970s, CEO pay has risen dramatically in an effort to inspire a similar rise in performance. The evidence, however, suggests that pay and performance are only loosely linked, if at all.

If people are motivated by pay, and pay is tied to job performance, then increased pay should lead to improved performance—but over the past few decades, the evidence has failed to support this conclusion.
Photo by Fotolia/Mariusz Blach