Re:In pursuit of excellence? (Score 1)

what's missing in this article is data on the correlation to size of company. there's empirical evidence to show that riskier and smaller companies deliver higher returns than larger more established companies. that is, if you bought a portfolio of 25 risky/small companies on nasdaq that portfolio will probably outperform a portfolio of 25 low-risk/large companies. Also, smaller companies may generally pay less (but for the few successful ones, owners may earn more by means of equity, not salary .. whereas larger companies may pay more to attract the right sort of talent that investors of large companies expect. as such, that would explain the poor correlation between pay and performance as there are extra factors involved.