Thursday, January 29, 2015

Chemi & Giorgi's "The Pay-for-Performance Myth"

UPDATE: The link listed below is currently not working. I've talked to Ariana Giorgi about this, and she is working to get her graph up and running again via Bloomberg. She was kind enough to provide me with a provide me with alternate URLs to the interactive scatter plot as well as a link to the original text of the story. Ariana is doing a lot of interesting work with data visualizations, follow her on Twitter or hit up her website.


This scatter plot (and accompanying news story from Bloomberg News) demonstrates what a non-existent linear relationship looks like. The data plots CEO pay on the x-axis and stock market return for that CEO's organization on the y-axis. I could see where this graph would also be useful in an I/O course in discussions of (wildly unfair) compensation, organizational justice, etc.

If you go to the website, the scatter plot is interactive in that you can cursor over the individual data points in order to see the person who it represents.