The Compensation Game
Do CEOs deserve “star” compensation? The idea that CEO pay is driven by the invisible hand of market forces is a myth from which chief executives have long benefited, say Harvard professors Lucian Bebchuk and Rakesh Khurana.
Content: Article | Authors: Lucian A. Bebchuk, Rakesh Khurana | Source: Harvard Business School (HBS) Working Knowledge | Subject: Corporate Governance
Out of Control?
Executive pay is often not linked to performance, says Lucian Bebchuk, who knows precisely what’s needed to bring it into line.
Content: Article | Authors: A.J. Vogl, Lucian A. Bebchuk | Source: Across the Board (ATB) | Subject: Corporate Governance
Pay without Performance: The Unfulfilled Promise of Executive Compensation
The company is under-performing, its share price is trailing, and the CEO gets…a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers’ influence over their own pay–and of a governance system that must fundamentally change if firms are … [ Read more ]
Content: Book | Authors: Jesse Fried, Lucian A. Bebchuk | Subject: Corporate Governance
Bring Shareholders into the Board Room
“Investors should continue to press for corporate governance reforms,” says Lucian A. Bebchuk, a professor at Harvard Law School and director of its Program on Corporate Governance. His case for change, from Harvard Magazine.
Content: Article | Author: Lucian A. Bebchuk | Source: Harvard Business School (HBS) Working Knowledge | Subject: Corporate Governance
Executive Compensation as an Agency Problem
This paper provides an overview of the main theoretical elements and empirical underpinnings of a “managerial power” approach to executive compensation. The managerial power approach recognizes that boards of publicly traded companies with dispersed ownership do not bargain at arms’ length with managers, and that managers are able to influence their own pay arrangements. It thus views executive compensation not only as an instrument for … [ Read more ]
Content: Article | Authors: Jesse Fried, Lucian A. Bebchuk | Subjects: Corporate Governance, Finance