Here's Some Ammo for Skews and MM

Jun 2013
5,707
1,735
Katmandu
Highest-Paid CEOs' Companies Perform Worse Than Industry Average: Study



Here’s a piece of investment advice you probably weren’t expecting: Stay away from companies that pay their CEOs the largest salaries.

A study put together by academics at three business schools in the U.S. and U.K. finds that companies with the highest-paid chief executives see much worse stock returns than the industry as a whole. And it’s the CEOs’ arrogance that is apparently to blame.

This chart shows cumulative returns at companies with CEOs in the highest-paid decile in their industry, and companies with CEOs in the lowest-paid decile in their industry, compared to the industry average.

While companies with the lowest-paid CEOs show returns that are more or less in line with the industry average, companies with the highest-paid CEOs show much worse returns for three years after the CEOs are awarded their large compensation packages.

The study came out in January, 2013, and apparently went largely unnoticed until this Business Insider article flagged it.

It found firms that pay their CEOs in the top ten per cent within their industry see returns that are typically 8 per cent lower than the overall industry for three years from the time the large pay package was awarded.

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More, including source links at Highest-Paid CEOs' Companies Perform Worse Than Industry Average: Study
Here is a link to the study, looks pretty thorough.

Performance for Pay? The Relation Between CEO Incentive Compensation and Future Stock Price Performance by Michael J. Cooper, Huseyin Gulen, P. Raghavendra Rau :: SSRN
 
Nov 2012
41,310
11,878
Lebanon, TN
I am not sure, but could it be the best performing companies are IPOs which make them small and a small rise in revenue creates a greater rate of return or growth.

While larger companies where a large profit does not change the rate of growth.


10 dollare increase in profits of from a previous 100 dollar profit is 10% Growth


a 10,000 dollar increase in profit, on a 1,000,000 company is only a 1% increased growth rate.


Who is going to get paid more. the CEO of a company that has 110 dollar profit

or the CEO of the company that has a 1,010,000 profit?
 
Apr 2005
2,182
119
Poplar, MT
The graph shows natural gas usage at manufacturing facilities. So it does not include for example, heating for office blocks or apartments. Yes, a component is for heating the manufacturing facility, but most manufacturing requires some heat, so the process to is apt to need more gas in winter.

Of significance here isn't the seasonal fluctuation but the year over year increase for any particular month. The 27% increase from 2009 to 2014, even if you wish to call it heating related, which would be false, is still indicative of increased manufacturing activity. But heaven forbid you would let a fact about things improving under Obama derail your fantasy based hate.
However that increase tracks rather well with the decrease in the production of coal.



So when power coal is being reduced, the industry has to make up for it somewhere!!!!

dmk