The Truth About Performance Goals

Can tying CEO compensation to performance goals make contracts too complicated and ultimately lead to lower firm performance? Research from Joseph L. Sweeney Chair and Accounting Professor Mary Ellen Carter says yes. Her working paper, “Complexity of CEO Compensation Packages,” co-authored by Ana M. Albuquerque and Zhe (Michael) Guo (both Boston University), and Luann J. Lynch (University of Virginia), was featured on the Columbia Law School blog. Their findings were also highlighted by the Boston Business Journal.