3 CEOs Not Earning Their Keep

Sometimes, the money thrown at the C-suite just isn't worth it

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Hands and DollarsThis is the second of two articles examining CEO compensation and stock performance. Previously, I looked at CEOs who earned their keep. Now, I’ll look at the biggest offenders — CEOs who were paid outlandish sums of money in 2012, yet whose stocks underperformed the S&P 500.

On one hand, only seven of the 25 highest-paid CEOs in this Wall Street Journal report outperformed the index in 2012. However, the very best-paid CEOs have mostly done well — four of the top five beat the S&P 500, with only Medtronic (NYSE:MDT) unable to meet the index’s 16% return.

At the very least, this shows pay for performance has some merit.

While the idea is to pick the stocks that performed the worst in 2012, some companies — like Hewlett-Packard (NYSE:HPQ) and Dell (NASDAQ:DELL) — have bounced back nicely in 2013. Therefore, I’ll look beyond 2012 performance, instead finding those who also have carried last year’s underperforming ways into 2013.

Article printed from InvestorPlace Media, http://investorplace.com/2013/03/3-ceos-not-earning-their-keep/.

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