Stock price not a good indicator of CEO performance?

I earlier talked about the danger of reducing Risk to a number. That number failed us.

Another number that is increasingly looked at with caution is the number by which CEOs are evaluated: stock price.

Management thinker C.K.Prahalad says “We took the complex nature of leadership and converted it into a single metric by basing compensation on the stock price.”

First posted in WordPress on December 29, 2008