NEW YORK (TheStreet) -- The question of whether a CEO is worth the price a company pays often boils down to measurable factors, like stock price. But that salary might also be worth it for other, less tangible reasons.
Last December, Prof. Sydney Finkelstein of the Tuck School of Business at Dartmouth had the heads of J.C. Penney (JCP), Sears Holdings (SHLD), BlackBerry (BBRY) and Microsoft (MSFT) high up on his annual rating of the "Worst CEOs of 2013." Last week, the employees and customers of Market Basket, a grocery store chain in New England, protested the firing of Arthur T. Demoulas, the former CEO. Other than those holding a short position, it is difficult to imagine anyone working against the replacement of the leaders of Blackberry, Sears Holdings and others on Finkelstein's list.
My article last week on TheStreet detailed the extensive damage overpaid CEOs can cause. This article takes the opposite approach, examining why those like Arthur T. Demoulas deserve every penny of the $10.5 million in average compensation received by the heads of members of the Standard & Poor's 500 Index (SPY).
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