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Eurocontrol Technics Ord EUCTF

"Eurocontrol Technics Group Inc is a Canada-based company involved in acquisition, development, and commercialization of security, authentication, verification and certification markets. The company through its subsidiaries is engaged in designing, manufacturing, marketing of energy-dispersive X-ray fluorescence (ED-XRF) systems, and developing technology and property that combines two-dimensional (2D) and three-dimensional (3D) image processing technology respectively."


OTCPK:EUCTF - Post by User

Post by Chutzpahon Jun 18, 2017 4:03am
133 Views
Post# 26375004

Performance for pay? The relationship between CEO incentive

Performance for pay? The relationship between CEO incentive

Good long read for the week end... bear it mind while casting your vote on the Proxy....



Third, highly paid CEOs may become overconfident or overconfident CEOs may seek out high pay. Either way, highly paid overconfident CEOs may engage in sub-optimal behavior from the standpoint of shareholders, such as wasteful capital expenditures and empire building (Ben- David, Graham, and Harvey, 2008, Malmendier and Tate, 2005, 2008, 2009). Thus, if CEO overconfidence is increasing in pay, and if investors are not fully aware of potential shareholder wealth destroying activities of the overconfident CEO, this suggests a negative relation between CEO incentive pay and future firm returns. 


https://online.wsj.com/public/resources/documents/CEOperformance122509.pdf



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