In a dispute over CEO compensation, Cornerstone Research worked with a labor economist to analyze whether a particular CEO of a privately held company was overcompensated.
In a dispute over CEO compensation, Cornerstone Research worked with a labor economist to analyze whether a particular CEO of a privately held company was overcompensated. We conducted a statistical analysis which considered both cash and noncash components of compensation. In addition, we considered important features that would be expected to impact compensation, including the size of the firm, whether or not the CEO was an original founder, and the performance of the firm. The results of our analysis demonstrated that the CEO was not overcompensated and could have been undercompensated given the characteristics of his firm and his specific situation.