Remuneration: Where We’ve Been, How We Got to Here, What are the Problems, and How to Fix Them

In many ways, Murphy and Jensen’s 1990 paper on CEO pay may have been one of the most influential finance papers written in the past 15 years. It showed not only how CEOs were being paid, but also stressed the importance of incentive based (pay for performance) pay. As I wrote in the summary of that paper for my classes: This is a classic work … [ Read more ]