“If you put $10,000 into the stocks of companies with the highest paid CEO’s in the previous years from 1991 to December of 2004 you would have ended up with only $8,079, while the same money invested on the S&P 500 would have returned you $48,350- that is, six times as much.”

William Bonner and Lila Rajiva

HKO comments- this is a scathing indictment of the effectiveness of corporate governance and the behaviouralist assumptions that more money gets better results. Our short term perspective on performance is not adding value.

Contrary to opinion- populist outrage is not against wealth- Bill Gates and Warren Buffet are widely admired. Outrage is against those who got paid vast sums they did not deserve or earn.

The real rage should be directed at the board of directors.

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