SOME people say it doesn’t really matter how much companies pay their executives, at least as far as the shareholders are concerned. Whether investors prosper depends on the executives’ management skill, not on penny-ante items like pay, this argument goes.
To this, Albert Meyer, a money manager at Bastiat Capital in Plano, Tex., responds with a resounding “phooey.”
Executive pay is not only a sign of how a company views its duties to shareholders, Mr. Meyer says, but it is also a crucial tire to kick when making investment decisions.
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