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Politics : Ask Michael Burke

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To: Don Lloyd who wrote (68007)	9/22/1999 12:07:00 PM
From: Michael Bakunin	Read Replies (2) of 132070

Can you say, "control group"? While it is received wisdom that good management increases shareholder value, I've never heard of a convincing study that the $90 million CEO performs better than the $900,000 variety. US CEO salaries implicitly assume that there is a tiny pool of ultra-skilled managers that are a tremendous marginal improvement, and that the Boards of large US firms have found and hired all of them. Improbable, post hoc anecdotes notwithstanding. -mb

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