1.
Stanford Closer LOOK series
Stanford Closer LOOK series 1
By David F. Larcker and Brian Tayan
November 25, 2019
pay for performance... but not
too much pay
The American Public’s View of CEO Pay
introduction
Among the controversies in corporate governance, perhaps none
is more heated or widely debated across society than that of CEO
pay. Americans might not have strong opinions about chairman
independence, proxy advisory firms, staggered boards, or dual-
class shares, but they almost always have an opinion (usually
negative) about how much CEOs are paid. While researchers and
practitioners argue over concepts of labor market efficiency, pay
for performance, and shareholder alignment, to members of the
public the issue of CEO pay boils down to a personal assessment
of whether any executive deserves to be paid so much money.
That said, corporations are not monolithic entities. They vary
by size, industry, and performance, and it is not practical to assume
that CEOs—no matter what pay they are offered on average—will
earn the same amounts in all circumstances. To the American
public, how should pay vary with size and performance? Under
what circumstances do CEOs deserve higher pay, and in those
cases, how much higher should it be? When value is created, how
much of that value should be paid as compensation, and what are
the implications given the incredible size and market valuation of
America’s largest companies?
To gain insight into these issues, the Rock Center for
Corporate Governance at Stanford University conducted a survey
of the American public asking their views on CEO pay.1
The views
that American citizens have on CEO pay is centrally important
because public opinion influences political decisions that shape
tax, economic, and regulatory policy. These, in turn, have a
significant impact on the incentives offered to senior executives
who make the investment and capital allocation decisions that
determine the productivity of the general economy and therefore
the standard of living of average Americans.
americans and ceo pay
Not surprisingly, most Americans do not have a favorable view
of CEO compensation. Eighty-six percent of respondents believe
the CEOs of large, public U.S. companies are overpaid; only 14
percent do not. Responses are remarkably similar across political
party affiliation and household income levels (see Exhibit 1).
Responses are also stable over time. A 2016 survey by the Rock
Center found that 83 percent of Americans believed CEOs to be
overpaid relative to the average worker.2
CEO pay, however, is not constant across companies. It
varies based on size, profitability, and organizational complexity,
and therefore we might expect that views of pay will depend on
what company is being evaluated. For example, median total
compensation among S&P 500 companies is $12 million, while
median total compensation among Russell 3000 companies is
a much lower $4.1 million. Within the Russell 3000, company
market capitalization at the 90th percentile is $23.6 billion and
CEO pay is $13.3 million; at the 10th percentile, those figures are
$945 million and $1.0 million, respectively. That is, as company
size increases 25-fold, pay increases 13-fold (see Exhibit 2).
The typical American agrees that CEO pay should vary with
company size. However, they believe the relation between size
and pay should be much lower than it is in practice. For example,
a typical respondent believes the CEO of a large company by sales
($25 billion) should be paid only 50 percent more than the CEO of
a smaller company by sales ($25 million)—despite a 1,000-fold
difference in revenue between the companies. Only 4 percent of
Americans believe the CEO of the larger company should receive
10 or more times the compensation of the CEO of the smaller
company (see Exhibit 3).3
Similarly, Americans believe the CEO
of a company with 10,000 stores should be paid 50 percent more
than the CEO of a company with 10 stores—also a 1,000-fold
difference in size. Only 7 percent believe the CEO of the larger
company should be paid at least 10 times more (see Exhibit 4).
While the median results are the same in both scenarios, the
distribution of responses is skewed higher in the second scenario,
suggesting that size as measured by operational complexity (store
count) is a more salient factor to Americans than revenue.
Furthermore, Americans believe that CEOs should be paid
more for growth. Fifty-four percent believe the CEO of a company

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that is growing and hiring U.S. employees should be paid more
than the CEO of a company that is shrinking and laying off U.S.
employees (assuming they are in the same industry and similarly
sized today), while only 31 percent believe they should be paid
the same (see Exhibit 5). Similarly, two-thirds of Americans (64
percent) believe founders who have presided over the growth
of their companies deserve higher pay than professional CEOs
of similarly sized companies who are promoted to the job (see
Exhibit 6). This suggests the public places a high value on the act
of job creation in assessing CEO pay, which of course directly
affects the economic prospects of workers.
Still, the disconnect between observed pay levels and the
public’s view of pay is stark. Prior studies find that CEO pay
increases approximately $0.3 for every $100 change in shareholder
wealth, but the public believes it should increase only $0.05 for
that same change.4
This might be due to the fact that the public
views compensation changes through the economic practices
that exist across the bottom and middle of most organizations,
where promotions are compensated with 10 percent, 15 percent,
and 20 percent raises, rather than the economic practices that we
witness at the top of organizations where compensation scales
significantly with size and profitability. Alternatively, it might be
that Americans do not believe CEOs are responsible for much of
the value creation at their companies. To this end, when given
a hypothetical situation of a CEO who creates $100 million in
value through his or her management, respondents are willing
to share $10 million, or 10 percent of this value in compensation
(median response). However, when asked about a company that
is simply worth $100 million more at the end of the year than at
the beginning of the year, respondents are willing to give only
$500,000 as compensation, implying that CEOs are responsible
for only 5 percent of value creation (see Exhibit 7).5
The research
evidence on this question is very mixed. Prior studies conclude that
CEOs are responsible for as little as 4 percent and as much as 36
percent of company performance.6
Corporate directors estimate
that CEOs are responsible for 40 percent of performance.7
Americans also hold varying opinions about how CEOs
should be compensated relative to other highly paid professionals.
Sixty-two percent of the public believe the CEO should always
be the highest paid person in a company, whereas 38 percent do
not (see Exhibit 8). However, only 43 percent believe the CEO of
a movie studio should make more than $10 million per year if an
important actor at that movie production company makes $10
million per year; and only 40 percent believe the CEO of a sports
team should make more than $10 million if an important athlete
on that team makes $10 million per year (see Exhibit 9). That is,
many Americans believe other individuals within an organization
can be responsible for a larger portion of value creation than the
CEO, although opinions on this question are mixed.
The public is also divided over the extent to which CEOs are
promoted because of effort, luck, or connections. That is, what
fundamentally drives the career success of the CEO? Thirty-nine
percent believe CEOs are promoted because they worked harder
than others, while 27 percent disagree. Thirty-two percent believe
they were promoted because they were lucky; 31 percent disagree.
And an overwhelming percentage (61 percent versus 8 percent)
believe CEOs had connections who helped them get to the top (see
Exhibits 10-12).
While the American public is critical of CEO pay levels,
they are much less critical of CEO perquisites. The majority of
Americans believe it is reasonable to provide the CEO a wide
variety of perks, including a company-provided private car
or jet for work, personal financial advisor, personal security,
supplemental pension, guaranteed severance, and membership to
a local country club. Among these, the use of a private jet for work
is considered the most reasonable, and guaranteed severance and
country club membership are considered the least reasonable.
Surprisingly, the seemingly controversial issue of using a private
jet for work ranks in the middle in terms of appropriateness:
70 percent say it is always or sometimes appropriate to provide
a private jet for work travel, while only 30 percent say this perk
should never be provided (see Exhibit 13).
Opinions of CEO pay become only modestly more favorable
when respondents are given actual data about the size and
profitability of the average large U.S. company and the amount of
pay and accumulated equity that CEOs have earned at these firms.
When told that the average large company in the U.S. earned $2
billion in profit last year and its CEO was paid $12 million, only
70 percent believe CEOs are overpaid—a 16-point improvement
over the unprompted question (see Exhibit 14). When told the
average large company has a market value of $45 billion and its
CEO accumulated $50 million in company stock over their career,
72 percent say CEOs are overpaid (see Exhibit 15).
Finally, in recent years several wealthy executives have
pledged to donate large portions of their accumulated wealth to
charitable organizations, rather than leave it to family members
at their death.8
To test whether the public’s view of CEO pay is
moderated based on these practices, we asked Americans for their
opinion of CEOs who donate much of their wealth. Responses
are mixed, including equal parts admiration and cynicism. For
example, respondents are as likely to say CEOs who donate most
of their wealth are a good role model for others (34 percent) as

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they are to say CEOs just want to reduce their taxes (31 percent).
They are also as likely to say CEOs donate their wealth to charity
because they feel strongly about addressing important social or
environmental problems (27 percent) as they are to say that CEOs
have probably already given a lot of money to their children (30
percent). A large minority (25 percent) say that CEOs who donate
their wealth do so to improve their reputation (see Exhibit 16).
Why This Matters
1. Survey data of the American population shows widespread
negative perceptions of CEO pay, due in part to the common
belief that CEOs are not responsible for significant portions
of the value creation and performance of their companies. Are
these views wrong? Or are the corporate directors who approve
pay levels wrong? How can our understanding of pay and value
be improved and the controversy over CEO pay resolved?
How might companies effectively communicate that CEO pay
is really due to shareholder wealth creation and employment
growth by the CEO?
2. The American public understands that CEO pay is, and
should be, related to the size, growth, and value of companies.
However, they disagree about the degree to which pay should
scale with size—i.e., “how much more.” In general, how should
the level of CEO pay rise with complexity and profitability,
particularly among America’s largest corporations? Is there
a point at which CEO pay should simply stop increasing? Or
does the basic economic principle of value sharing continue to
apply no matter the scale of the company?
3. Considerable political pressure exists to “reform” CEO pay.
How should political implications, if at all, be factored into
CEO pay decisions? Should pay be reformed in the boardroom,
or should high pay levels be addressed solely through the tax
code?9
4. Cynicism runs through the survey data cited in this Closer
Look. The public not only expresses unfavorable views about
CEO pay, but they also express healthy degrees of cynicism
about how CEOs get their jobs (hard work versus luck and
connections) and about CEOs who donate their wealth (to help
society or for tax and reputational benefits). Are the negative
views of CEO pay driven in part by a broader skepticism or
lack of esteem for CEOs? Or do high pay levels themselves
contribute to lower regard for CEOs? 
1
In October 2019, the Rock Center conducted a survey of 3,078
individuals—nationally representative by gender, age, race, political
affiliation, household income, and state residence—to understand the
views that Americans have on CEO compensation. Unless otherwise
cited, the statistics cited in this Closer Look are derived from that survey.
2
For a fair comparison, responses were adjusted to exclude “I don’t know.”
The unadjusted data in the 2016 survey were 74 percent overpaid, 16
percent not overpaid, and 11 percent “I don’t know.” See, Rock Center
for Corporate Governance at Stanford University, “Americans and CEO
Pay: 2016 Public Perception Survey on CEO Compensation,” (2016).
3
Calculated as the percent of respondents who believe the CEO should
be paid “more” (as opposed to the same or less) multiplied by the percent
who believe pay should be 10 or more times larger (8 percent).
4
Michael C. Jensen and Kevin J. Murphy, “Performance Pay and Top-
Management Incentives,” Journal of Political Economy (1990).
5
Data in this second scenario from: “Americans and CEO Pay: 2016
Public Perception Survey on CEO Compensation,” (2016).
6
Using a small sample of 12 British firms, Thomas (1988) finds that CEOs
are responsible for between 3.9 percent and 7 percent of the unexplained
variance in profits, sales, and profit margins across companies. Mackey
(2008) uses a moderate sample of 51 firms whose CEOs worked for
more than one firm in the sample; she finds that CEOs account for 29.2
percent of the unexplained variance in company profitability (ROA) and
12.7 percent in business-segment profitability. Hambrick and Quigley
(2014) use a sample of 830 CEOs and 315 companies and find that
CEOs account for 35.5% of firm outcomes (ROA). See Alan B. Thomas,
“Does Leadership Make a Difference to Organizational Performance?”
Administrative Science Quarterly (1988); Alison Mackey, “The Effect
of CEOs on Firm Performance,” Strategic Management Journal (2008);
Donald C. Hambrick and Timothy J. Quigley, “Toward More Accurate
Contextualization of the CEO Effect on Firm Performance,” Strategic
Management Journal (2014).
7
Rock Center for Corporate Governance, “CEOs and Directors on Pay:
2016 Survey on CEO Compensation,” (2016).
8
See “The Giving Pledge,” available at: https://givingpledge.org/.
9
For the American public view of taxes, see Rock Center for Corporate
Governance at Stanford University, “2019 U.S. Tax Survey,” (2019).
David Larcker is Director of the Corporate Governance Research
Initiative at the Stanford Graduate School of Business and senior faculty
member at the Rock Center for Corporate Governance at Stanford
University. Brian Tayan is a researcher with Stanford’s Corporate
Governance Research Initiative. They are coauthors of the books
Corporate Governance Matters and A Real Look at Real World
Corporate Governance. The authors would like to thank Michelle E.
Gutman for research assistance with these materials.
The Stanford Closer Look Series is dedicated to the memory of our
colleague Nicholas Donatiello.
The Stanford Closer Look Series is a collection of short case studies that
explore topics, issues, and controversies in corporate governance and
leadership.ItispublishedbytheCorporateGovernanceResearchInitiative
at the Stanford Graduate School of Business and the Rock Center for
CorporateGovernanceatStanfordUniversity.Formoreinformation,visit:
http:/www.gsb.stanford.edu/cgri-research.
Copyright © 2019 by the Board of Trustees of the Leland Stanford Junior
University. All rights reserved.

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Pay for Performance... But Not Too Much Pay
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Exhibit 1 — American Perception of CEO Pay Levels
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
In general, do you believe that the CEOs of large, public U.S. companies are overpaid?
14%
86%
0% 20% 40% 60% 80% 100%
No
Yes
8%
92%
14%
86%
19%
81%
0% 20% 40% 60% 80% 100%
No
Yes
Republican Independent Democrat
17%
83%
12%
88%
13%
87%
0% 20% 40% 60% 80% 100%
No
Yes
High Income Middle Income Low Income

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Exhibit 2 — CEO Pay Levels
Sources: Equilar, “CEO Pay Trends,” (July 2019); The Conference Board, The Conference Board, “CEO & Executive Compensation Practices:
2018 Edition,” (2018); and the Center for Research in Security Prices (CRSP).
CEO Pay at 500 Largest Companies
6.9 7.2 7.5 8.1 8.7
9.7 10.2 10.6
11.2
12.1
14.3 14.6
15.4 15.3
15.8
2014 2015 2016 2017 2018
25th Percentile Median 75th Percentile
CEO Pay at 3000 Largest Companies
Percentile Company Size Market Value CEO Pay Pay as % of Size
90th 300th largest $23,618 million $13.3 million 0.06%
75th 700th $8,256 million $7.8 million 0.09%
50th (Median) 1500th $2,981 million $4.1 million 0.14%
25th 2250th $1,405 million $2.0 million 0.14%
10th 2700th $945 million $1.0 million 0.11%

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Pay for Performance... But Not Too Much Pay
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Exhibit 3 — CEO Pay and Company Revenue
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
How much should the CEO of a large company ($25 billion in sales) be paid relative to the CEO of a
smaller company ($25 million in sales?)
17%
34%
49%
0% 20% 40% 60%
Less
The same
More
[If more] How much more?
3%
3%
11%
10%
6%
16%
32%
19%
3%
6%
11%
11%
7%
17%
29%
16%
4%
5%
12%
15%
3%
15%
31%
15%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more
Republican Independent Democrat
2%
4%
9%
8%
5%
18%
33%
21%
3%
3%
12%
13%
5%
17%
30%
17%
4%
8%
14%
13%
6%
14%
29%
12%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more
High Income Middle Income Low Income
3%
5%
12%
11%
6%
16%
31%
16%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more

7.
Pay for Performance... But Not Too Much Pay
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Exhibit 4 — CEO Pay and Store Count (Complexity)
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
How much should the CEO of a company with 10,000 stores be paid relative to the CEO of a company
with 10 stores in the U.S.?
12%
26%
62%
0% 20% 40% 60% 80%
Less
The same
More
[If more] How much more?
2%
7%
15%
9%
7%
18%
27%
15%
5%
9%
15%
12%
3%
19%
26%
11%
6%
9%
14%
9%
5%
20%
26%
11%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more
Republican Independent Democrat
2%
7%
12%
9%
7%
20%
29%
14%
3%
7%
16%
10%
5%
18%
27%
14%
8%
11%
15%
12%
4%
17%
23%
10%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more
High Income Middle Income Low Income
4%
8%
15%
10%
5%
19%
27%
12%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more

8.
Pay for Performance... But Not Too Much Pay
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Exhibit 5 — CEO Pay and Company Growth
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
How much should the CEO of a company that is growing and hiring employees in the U.S. be paid
relative to the CEO of a company that is shrinking and laying off employees in the U.S. (assuming they
are in the same industry and similarly sized today)?
15%
31%
54%
0% 20% 40% 60%
Less
The same
More
[If more] How much more?
3%
1%
8%
7%
7%
21%
32%
21%
2%
2%
12%
11%
5%
22%
27%
19%
3%
2%
11%
9%
8%
22%
25%
20%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more
Republican Independent Democrat
2%
2%
8%
6%
10%
24%
27%
21%
2%
2%
10%
9%
5%
20%
30%
22%
4%
2%
12%
11%
7%
21%
26%
17%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more
High Income Middle Income Low Income
3%
2%
9%
9%
7%
22%
28%
20%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more

9.
Pay for Performance... But Not Too Much Pay
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Exhibit 6 — Compensating Founders versus Professional CEOs
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
Does the CEO who starts a company and grows it to be very large (the founder) deserve to be paid
more than the CEO of a large company who did not start the company but was promoted to the job
(not the founder), assuming they are in the same industry and similarly sized today?
[If more] How much more?
36%
64%
0% 20% 40% 60% 80%
No
Yes
4%
1%
10%
10%
9%
22%
25%
19%
3%
3%
10%
12%
5%
20%
29%
18%
5%
3%
10%
12%
10%
21%
24%
15%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more
Republican Independent Democrat
3%
1%
8%
9%
11%
22%
26%
20%
3%
2%
10%
12%
7%
22%
27%
17%
6%
4%
12%
15%
7%
18%
24%
14%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more
High Income Middle Income Low Income
4%
2%
11%
11%
8%
21%
26%
17%
0% 20% 40%
More than 10 times as much
10 times as much
3-9 times as much (collapsed)
2 times as much
75% more
50% more
25% more
10% more

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Exhibit 7 — CEO Pay and Value Sharing
Sources: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University; 2019 survey, and Rock Center
for Corporate Governance at Stanford University, “Americans and CEO Pay: 2016 Public Perception Survey on CEO Compensation,” (2016).
If a CEO creates $100 million in value through his or her management, how much of this $100 million
should be paid to the CEO as compensation?
Hypothetically, if a company is worth $100 million more than at the beginning of the year, how much
of this $100 million should be given to the CEO as compensation?
$10
$- $2 $4 $6 $8 $10 $12 $14 $16
Median
$ in millions
$10
$10
$10
$- $2 $4 $6 $8 $10 $12 $14 $16
Median
$ in millions
Republican Independent Democrat
$15
$10
$9
$- $2 $4 $6 $8 $10 $12 $14 $16
Median
$ in millions
High Income Middle Income Low Income
$0.5
$0 $2 $4 $6 $8 $10 $12 $14 $16
Median
$ in millions
$0.5
$0.5
$0.5
$0 $2 $4 $6 $8 $10 $12 $14 $16
Median
$ in millions
Republican Independent Democrat
$0.3
$0.3
$1.0
$0 $2 $4 $6 $8 $10 $12 $14 $16
Median
$ in millions
High Income Middle Income Low Income

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Exhibit 8 — CEO Pay Relative To Other Executives
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
Do you think the CEO should always be the highest paid person at the company?
38%
62%
0% 20% 40% 60% 80%
No
Yes
39%
61%
44%
56%
29%
71%
0% 20% 40% 60% 80%
No
Yes
Republican Independent Democrat
41%
59%
37%
63%
34%
66%
0% 20% 40% 60% 80%
No
Yes
High Income Middle Income Low Income

12.
Pay for Performance... But Not Too Much Pay
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Exhibit 9 — CEO Pay Relative To Other Highly Paid Professionals
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
If the CEO of a movie studio pays an important actor $10 million per year, should the CEO of this movie
production company make more than $10 million per year?
59%
41%
63%
37%
59%
41%
0% 20% 40% 60% 80%
No
Yes
Republican Independent Democrat
47%
53%
58%
42%
63%
37%
0% 20% 40% 60% 80%
No
Yes
High Income Middle Income Low Income
If the CEO of a sports team pays an important athlete $10 million per year, should the CEO of this
sports team make more than $10 million per year?
61%
39%
65%
35%
54%
46%
0% 20% 40% 60% 80%
No
Yes
Republican Independent Democrat
55%
45%
60%
40%
63%
37%
0% 20% 40% 60% 80%
No
Yes
High Income Middle Income Low Income
57%
43%
0% 20% 40% 60%
No
Yes
60%
40%
0% 20% 40% 60% 80%
No
Yes

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Pay for Performance... But Not Too Much Pay
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Exhibit 10 — The Contribution of Hard Work to CEO Promotion
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
To what extent do you agree with the following statement: CEOs get promoted to their jobs because
they worked harder than others.
7%
20%
34%
27%
12%
0% 20% 40%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
8%
22%
33%
26%
11%
9%
20%
40%
23%
8%
4%
16%
31%
32%
17%
0% 20% 40% 60%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
Republican Independent Democrat
7%
17%
37%
26%
13%
7%
21%
33%
29%
10%
8%
23%
33%
24%
12%
0% 20% 40%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
High Income Middle Income Low Income

14.
Pay for Performance... But Not Too Much Pay
14Stanford Closer LOOK series
Exhibit 11 — The Contribution of Luck to CEO Promotion
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
To what extent do you agree with the following statement: CEOs get promoted to their jobs because
they were lucky.
7%
24%
37%
23%
9%
0% 20% 40%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
5%
21%
38%
26%
10%
7%
27%
38%
22%
6%
7%
28%
34%
21%
10%
0% 20% 40%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
Republican Independent Democrat
7%
21%
38%
24%
10%
5%
25%
38%
24%
8%
9%
29%
33%
21%
8%
0% 20% 40%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
High Income Middle Income Low Income

15.
Pay for Performance... But Not Too Much Pay
15Stanford Closer LOOK series
Exhibit 12 — Inside Connections and CEO Promotion
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
To what extent do you agree with the following statement: CEOs get promoted to their jobs because
they had connections who helped them get to the top
2%
6%
31%
38%
23%
0% 20% 40%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
2%
6%
27%
39%
26%
2%
5%
33%
38%
22%
2%
7%
33%
38%
20%
0% 20% 40% 60%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
Republican Independent Democrat
2%
6%
32%
37%
23%
2%
6%
30%
39%
23%
2%
7%
29%
39%
23%
0% 20% 40% 60%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
High Income Middle Income Low Income

16.
Pay for Performance... But Not Too Much Pay
16Stanford Closer LOOK series
Exhibit 13 — CEO Perquisites
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
Is it reasonable for a company to offer the following perks to its CEO?
15%
15%
16%
19%
24%
25%
34%
43%
55%
44%
62%
46%
50%
55%
42%
30%
40%
19%
30%
25%
11%
0% 20% 40% 60% 80% 100%
Membership to local country club
Private jet for work
Guaranteed severance if they are fired
Personal security
Personal financial advisor
Supplemental pension after retirement
Private car for work
Always Sometimes Never

17.
Pay for Performance... But Not Too Much Pay
17Stanford Closer LOOK series
Exhibit 14 — Company Profit and CEO Pay
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
The average large company in the U.S. earned a profit of $2 billion last year and its CEO was paid $12
million. Which of the following best describes your opinion about CEO pay at these companies?
1%
3%
26%
34%
36%
0% 20% 40%
CEOs are highly underpaid
CEOs are somewhat underpaid
CEOs are fairly paid
CEOs are somewhat overpaid
CEOs are highly overpaid
1%
2%
22%
34%
41%
2%
3%
27%
34%
34%
1%
4%
30%
34%
31%
0% 20% 40% 60%
CEOs are highly underpaid
CEOs are somewhat underpaid
CEOs are fairly paid
CEOs are somewhat overpaid
CEOs are highly overpaid
Republican Independent Democrat
1%
3%
27%
32%
37%
1%
3%
25%
36%
35%
1%
3%
26%
34%
36%
0% 20% 40%
CEOs are highly underpaid
CEOs are somewhat underpaid
CEOs are fairly paid
CEOs are somewhat overpaid
CEOs are highly overpaid
High Income Middle Income Low Income

18.
Pay for Performance... But Not Too Much Pay
18Stanford Closer LOOK series
Exhibit 15 — company market value and ceo pay
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
The average large company in the U.S. had a market valuation of $45 billion last year and its CEO had
accumulated $50 million in company stock during their time as CEO. Which of the following best
describes your opinion about CEO pay at these companies?
1%
2%
25%
35%
37%
0% 20% 40%
CEOs are highly underpaid
CEOs are somewhat underpaid
CEOs are fairly paid
CEOs are somewhat overpaid
CEOs are highly overpaid
1%
1%
20%
35%
43%
2%
2%
24%
34%
38%
1%
2%
29%
37%
31%
0% 20% 40% 60%
CEOs are highly underpaid
CEOs are somewhat underpaid
CEOs are fairly paid
CEOs are somewhat overpaid
CEOs are highly overpaid
Republican Independent Democrat
2%
4%
26%
32%
36%
1%
1%
24%
37%
37%
0%
2%
24%
34%
40%
0% 20% 40% 60%
CEOs are highly underpaid
CEOs are somewhat underpaid
CEOs are fairly paid
CEOs are somewhat overpaid
CEOs are highly overpaid
High Income Middle Income Low Income

19.
Pay for Performance... But Not Too Much Pay
19Stanford Closer LOOK series
Exhibit 16 — charitable giving
Source: Survey of 3,078 individuals, nationally representative by gender, age, race, political affiliation, household income, and state
residence, conducted in October 2019 by the Rock Center for Corporate Governance at Stanford University.
Some CEOs have pledged to donate the vast majority of their wealth to charitable organizations
rather than leave it to their children through inheritance. What is your opinion of this behavior?
(select all that apply)
12%
13%
17%
21%
22%
25%
27%
30%
31%
34%
0% 20% 40%
No opinion
They feel guilty about making so much money
They want the press to write positive stories about them
They want to deflect criticism about their pay
They deserve favorable public recognition
They want to improve their reputation
They feel strongly about addressing important social or
environmental problems
They have probably given a lot to their children already
They want to reduce their taxes
They are a good role model for others