The quick answer from the paper embedded below is no. The executive summary is very enlightening in that it states –
Has CEO pay reflected long-term stock performance? In a word, “no.”
Companies that awarded their Chief Executive Officers (CEOs) higher equity incentives had below-median returns based on a sample of 429 large-cap U.S. companies observed from 2006 to 2015.
On a 10-year cumulative basis, total shareholder returns of those companies whose total summary pay (the level that must be disclosed in the summary tables of proxy statements) was below their sector median outperformed those companies where pay exceeded the sector median by as much as 39%.1
For long-term institutional investors, this potential misalignment of interests between CEOs and shareholders may undermine the adoption of equity-based incentive pay that has dominated executive pay practices in the U.S. for the past three decades. During the observed period, long-term incentive pay was the largest element of CEO pay, accounting for more than 70% of compensation for both summary pay and realized pay (which incorporates stocks gains realized during the course of the year), according to our calculations
If the CEO of one of Australia’s larger transport entities is asked to go, he is to be given 12 months notice. And if he resigns he has to give 12 months notice. Lets assume he resigns and gives the notice period. I believe the following will then occur. The Board will meet and decide “We cannot have a non committed CEO for that length of time”. So they will pay him out. Then how about the following true and publicly documented example. CEO presents at AGM, a glowing dissertation of the company’s prospects, AGM then votes to accept increased executive remuneration scale. Within 6 weeks company makes announcement on deteriorating market conditions and warns of reduced profits. Given size and scale of this company’s operations this change in market condition did not occur overnight.
Endnote: If you have trouble sleeping I can read you a book on CEO self interest from my own experiences. Guarantee you will not stay awake for the full story.