Photo by Ryan Holloway

Adding to the deluge of summertime city rankings, a study on CEO compensation has found that local bigwigs are overpaid compared to those in other cities and despite company performance. The Washington Business Journal reports that the study by BDO USA, which looked at the top 25 performing companies in each city, ranks the D.C.-area second in compensation (salary, bonuses, stock options, etc.) raises for CEOs, 37 percent from 2008 to 2009, just second to Atlanta. The hikes in pay run contrary to median shareholder returns, which increased 85 percent, well below the national median of 98 percent.

A similar, but less stark, story was found when looking at the 25 worst-performing public companies in the area. Companies were reluctant to give their CEOs pay cuts in line with returns, compared to the national rate.

If shareholder and regulatory scrutiny are more important than ever, then what accounts for the discrepancy? The study was sparse on giving an explanation. Many indicators show that D.C. is an attractive area for business growth and development, but perhaps retaining management talent remains troublesome. Maybe a cupcake will do the trick.