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CEO pay moves with corporate results

Chief executives increasingly are being paid based on their companies’ financial results and share prices, according to a Wall Street Journal analysis.

CEO pay during 2011 was more firmly correlated to how well companies fared in the stock market, a change from 2010, when pay and performance were not directly related.

On average, for every additional 1 percent a company returned to shareholders between 2009 and 2011, the CEO was paid 0.6 percent more last year, the analysis found. For every 1 percent decline in shareholder return, the CEO was paid 0.6 percent less.

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(Source: The Wall Street Journal Online )