CEO Performance Evaluation Methods
Question: “My company is looking for a better way to evaluate the performance of our CEO. It seems like “stock value” has been the primary way to do so, at least historically. Is it still the best performance measure of a CEO’s efforts to increase the value of a company?” Answer: It is the “common measure” historically, but far from the “best!” A company’s stock market value is affected by many “psychological factors” that influence stock prices in general. For example, in th