Reforming CEO pay: Focus on the right dimensions

Alex Edmans 11 September 2014

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Executive pay is a high-profile topic on which almost everyone has an opinion.  Many shareholders, workers, and politicians believe that the system is broken and requires a substantial overhaul.  Despite being well-intentioned, their suggested reforms may not target the elements of pay that are most critical for shareholder value and for society.

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Topics:  Financial markets Labour markets

Tags:  executive pay, corporate governance, Executive compensation, CEOs

Through the looking glass: CEO pay in China's listed companies

Alex Bryson, John Forth, Minghai Zhou 24 June 2014

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For many in the West China remains a paradox: a single-party Communist state with a vibrant, thriving economy set to challenge the US in the coming decade. Some have questioned the sustainability of the Chinese growth miracle in the absence of fully-fledged democracy and root-and-branch market reforms. But others point to state-sponsored decentralised market reforms over the past three decades as the key to China's success (Xu 2012).

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Topics:  Financial markets Labour markets

Tags:  China, executive pay, corporate governance, Executive compensation, CEOs

How do CEOs spend their time?

Andrea Prat, Oriana Bandiera, Luigi Guiso, Raffaella Sadun 28 May 2011

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Corporate leadership attracts enormous attention, both from scholars and from the public. Yet, despite this strong interest, very little is known on what activities leaders engage in. Most texts that purport to define and explain the role of corporate leaders are based on a small amount of evidence, often just a single case. What is widely considered the authority in this area, John P Kotter’s (1999) classic, “What Leaders Really Do?,” is based on recording the activities of 15 general managers of non-randomly selected companies for 35 hours each.

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Topics:  Frontiers of economic research Productivity and Innovation

Tags:  Management, CEOs

New thinking on executive compensation: Pay CEOs with debt

Alex Edmans 13 July 2010

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The recent financial crisis saw CEOs undertake risky actions that cost bondholders billions of dollars. Examples included excessive subprime lending, over-expansion, or diversifying away from their core business into derivatives trading, as happened at Enron and AIG.

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Topics:  Financial markets Labour markets

Tags:  executive pay, inside debt, CEOs