Optimistic CEOs paid less, according to study

Optimistic CEOs are paid less, according to new research from HEC Paris business school.

The report finds that executives with a positive outlook receive smaller stock option grants, fewer bonus payments, and lower total compensation than their more ‘realistic’ peers because they overestimate the value of compensation components that depend on successful outcomes.

This means that they are often happy to accept smaller pay packages based on the assumption that stock options, in particular, will be worth more in the future than could reasonably be expected.