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Eugen Tarnow

 

    Analytical Thoughts

      CEO pay for S & P 500 firms: Women paid same as men & have the same one-year return. Still no correlation between pay and share holder value.

      Eugen G Tarnow  May 31 2017 10:32:59 AM
      By Eugen Tarnow, Ph.D.
      Avalon Business Systems, Inc.
      http://AvalonAnalytics.com

      The Wall Street Journal just published the CEO pay and share holder return for the S & P 500 companies.  Their conclusion (women CEOs are paid more) is different from mine: the women are not paid more than the men - they are paid the same, at least if one adjusts for statistical noise.  

      Neither gender is better for share holders.

      Here is the result of my ANOVA:
      Field Men Women p (useful if <0.05)
      Total CEO Pay ($million)
      13.288
      14.346
      		0.65
      ShareHolderReturn (%)
      0.143
      0.232
      		0.10




      And here are the graphs:
      Image:CEO pay for S & P 500 firms: Women paid same as men & have the same one-year return. Still no correlation between pay and share holder value.Image:CEO pay for S & P 500 firms: Women paid same as men & have the same one-year return. Still no correlation between pay and share holder value.

      Image:CEO pay for S & P 500 firms: Women paid same as men & have the same one-year return. Still no correlation between pay and share holder value.Image:CEO pay for S & P 500 firms: Women paid same as men & have the same one-year return. Still no correlation between pay and share holder value.

      As usual, there is no correlation between CEO pay and share holder return:

      Image:CEO pay for S & P 500 firms: Women paid same as men & have the same one-year return. Still no correlation between pay and share holder value.






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