Higher pay doesn't always mean better performance.
CEOs who receive higher pay than their peers often end up making worse decisions in terms of stock returns' bottom line, one study found. In fact, the highest-paid CEOs did 15 percent worse than their competitors.
Equilar released its annual top CEO compensation data on Monday (it was first published in The New York Times), and the 2014 numbers do nothing to reaffirm our faith in executive compensation schemes. There is no significant relationship between the increase in an executive's compensation last year and a company's returns.