# Professor Scott Galloway's comments on how CEO compensation tied to earnings reports drives behavior are highlighted

1 Faculty News April 17, 2020 ![CNBC logo](/sites/default/files/styles/246w/public/assets/images/uat_027305.jpg?itok=Ipx0jiaQ)>

Excerpt from [CNBC](https://www.cnbc.com/2020/04/17/pandemic-has-companies-dropping-earnings-guidance-and-some-say-it-should-be-nixed-altogether.html) -- “'When you pay CEOs based on earnings, and the metric is quarterly earnings, and the compensation committee says 98% of your compensation is going to be based on the stock price, which investors have linked to the earnings, compensation drives behavior,' [Scott Galloway](https://www.stern.nyu.edu/faculty/bio/scott-galloway) of NYU’s Stern School of Business said on CNBC when Dimon made his remarks in 2018."

[Read More](https://www.cnbc.com/2020/04/17/pandemic-has-companies-dropping-earnings-guidance-and-some-say-it-should-be-nixed-altogether.html)