From www.sciencedirect.com: The study investigates the rising complexity of CEO compensation contracts, revealing that such complexity has notably increased over the years due to both internal and external pressures, particularly from compensation consultants and institutional investors.

It establishes a negative correlation between contract complexity and future firm performance, indicating that overly intricate contracts can hinder decision-making and ultimately affect firm outcomes.

The research quantifies complexity through various dimensions of compensation, contributing valuable insights to the understanding of executive pay structures.