Litigating Challenges to Executive Pay: An Exercise in Futility?

Litigating Challenges to Executive Pay: An Exercise in Futility?

How (Not) to Pay Non-executive Directors

Performance pay, at least as usually understand, is no good idea for non-executive directors. They have to supervise and control or in some situations even to fire and replace the executive managers. This means that their performance as supervisors is totally different from the performance of the supervised executive managers and even the company at large. Moreover, they are mostly interested i...

Merger Activity and Executive Pay

This paper examines the impact of mergers and acquisitions on the remuneration of the CEOs in a large unbalanced panel of UK firms, over the period 1981-1996. We find significant and substantial executive pay increases in excess of those generated by the growth in firm size consequent upon the merger. This is consistent with the view that mergers reveal information about the quality of manageme...

Executive Pay and Corporate Financial Performance. An Explorative Data Analysis

The relationship between executive pay and corporate financial performance continues to attract wide academic, media and policy attention. The very high salaries enjoyed by senior executives in corporations in the US are often contrasted with the relatively low pay received by executives in Europe and Asia. Empirical research on executive pay has mainly concentrated on the pay-performance relat...

Executive Pay, Hidden Compensation, and Managerial Entrenchment

We consider a “managerial optimal” framework for top executive compensation, where top management sets their own compensation subject to limited entrenchment, instead of the conventional setting where such compensation is set by a board that maximizes firm value. Top management would like to pay themselves as much as possible, but are constrained by the need to ensure sufficient efficiency to a...