How Boards Can Rein In CEO Pay

I’m all in favor of greater corporate disclosure and transparency, but the goal shouldn’t be simply to limit CEO pay. Instead, it should be to make certain their compensation is tied to the company’s long-term performance. And it would be better for all concerned if boards, rather than regulators, assumed their rightful responsibility to get executive compensation right. Three general principles can serve as guidelines for responsible boards willing to take on that task.

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