High CEO salaries can be bad for business, U. study finds

“Employing complex statistical analysis, the study establishes a deeper understanding of the link between executive pay and financial performance and reveals that the more executives are paid, the more they exhibit overconfidence in their decision-making, Cooper explained.

This overconfidence leads to increased risk-taking behaviors, such as aggressive mergers and acquisitions, investments in questionable projects and wasteful spending, he said.”