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External Partners Alumni Search Submit Return to home Search Search About About Olin Home Why Olin Equity, Diversity & Inclusion Leadership & Strategy News & Media Events Contact Us Programs Programs Home Explore Our Programs BS in Business Administration MBAs Specialized Master's Doctoral Executive Education Dual Degrees Faculty & Research Faculty & Research Home Faculty Directory Research Research Centers Olin Brookings Commission Olin Award Student Resources Student Resources Home Career Services Center for Experiential Learning Entrepreneurship Academic Calendars Student Organizations For Current Students For Military Veterans Admissions Admissions Home Scholarships & Aid Attend Program Events Visit Olin Ask a Student Student Profiles Request Information Refer a Candidate External Partners Alumni CEO pay rises with stock market March 23, 2017 By WashU Olin Business School 1 minute read Home News CEO pay rises with stock market “Right now, I think the increase in CEO pay is more stock market driven than profit driven,” said Radhakrishnan Gopalan, Olin associate professor in finance told NBC News in response to a new study from the Wall St. Journal on CEO compensation. “The stock market is rising in anticipation of future growth in profits,” Gopalan said. “The stock awards, which are basically what’s driving the growth in CEO pay, are mostly a motivator for future performance.” This kind of forward-looking optimism is typical of a stock-heavy incentive structure, but some warn this can be an imperfect way of measuring performance, since bull market gains aren’t matched proportionately with bear market losses. Unfortunately, they never retrench,” Gopalan said. “That link is weaker on the down side.” Link to NBC story here. Watch video about related research on CEO compensation from Prof. Gopalan and Prof. Todd Milbourn that won the Olin Award in 2016. About the Author WashU Olin Business School Firmly established at the Gateway to the West, Olin Business School at Washington University in St. Louis stands as the gateway to something far grander in scale. The education we deliver prepares our students to thoughtfully make difficult decisions—the kind that can change the world. Contact Us For assistance in finding faculty experts, please contact Washington University Public Affairs. Monday–Friday, 8:30 to 5 p.m. Sara Savat, Senior News Director, Business and Social [email protected]   Kurt Greenbaum,Communications [email protected] Twitter: WUSTLnews Share article Apply Now Visit Us Request Info One Brookings Drive, St. Louis, MO 63130-4899 [email protected] 314-935-7301 News & Media Events Faculty Directory WashU Center for Career Engagement Washington University home Olin Links Sitemap Privacy Policies Title IX Accessibility ©2024 Washington University in St. Louis

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