What's the connection between CEO pay and company stock performance? A new study sought to find the answer, according to Fortune.
MSCI, a research firm, analyzed 800 CEOs' compensation at 429 big and middle-sized companies between 2006 and 2015. They found "companies with lower total summary CEO pay levels more consistently displayed higher long-term investment returns," according to the report.
If one were to invest $100 in one of the companies with the highest-paid CEOs, the money would have increased to $265 between 2006 and 2015. But a $100 investment in one of the companies with a lowest-paid CEO would have matured to $367 during the same time period, according to the study.
The study authors chalked up these facts to the SEC's disclosure rules, which "focus on annual instead of long-term reporting," according to the study.