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Why Measure the CEO’s Performance

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Bottom Line Results from Strategic Human Resource Planning

Abstract

A recent survey (Sibson, 1990) of 644 companies found that only 14 percent bother to evaluate their CEO’s performance via any systematic process. Evidence also suggests that, for CEOs, negative consequences (i.e., dismissal, drastically lower pay) associated with poor performance are almost nonexistent (Jensen and Murphy, 1990). Finally, the relationship between CEO pay and company performance “is weakening” (Crystal, 1990; p. 94). Fifty five percent of the variance in CEO pay is not accounted for by company performance, size, business risk, company geographic location, or even CEO tenure.

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Author information

Authors and Affiliations

  1. Sibson & Company, Inc., 212 Carnegie Center, Princeton, NJ, 08543, USA

    C. E. Schneier & D. G. Shaw

  2. Institute of Management, Rutgers University, P.O. Box 5062, New Brunswick, NJ, 08903-5062, USA

    R. W. Beatty

Authors
  1. C. E. Schneier
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  2. R. W. Beatty
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  3. D. G. Shaw
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Editor information

Editors and Affiliations

  1. Office of the Chief of Naval Operations, Washington, D.C., USA

    Richard J. Niehaus (Assistant for Human Resources Analysis) (Assistant for Human Resources Analysis)

  2. TPF&C, a Towers Perrin Company, Philadelphia, Pennsylvania, USA

    Karl F. Price (Principal) (Principal)

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© 1991 Springer Science+Business Media New York

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Schneier, C.E., Beatty, R.W., Shaw, D.G. (1991). Why Measure the CEO’s Performance. In: Niehaus, R.J., Price, K.F. (eds) Bottom Line Results from Strategic Human Resource Planning. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-9539-4_19

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  • DOI: https://doi.org/10.1007/978-1-4757-9539-4_19

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4757-9541-7

  • Online ISBN: 978-1-4757-9539-4

  • eBook Packages: Springer Book Archive

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