A divergence of interests between a company’s shareholders and executives is at the root of the “agency problem.” No issue illuminates just how acute the problem is than executive compensation. Who’s right and what’s fair compensation. Managers with CalPERS, one of the vocal and visible institutional shareholders, have developed a model that will reveal if a certain executive compensation is warranted or not.
Editor’s Note: my … [ Read more ]
Content: Article | Authors: Bridgette Butler, Mark Anson, R. Theodore White, William McGrew | Source: Ivey Business Journal | Subject: Corporate Governance