Myths and Realities of Executive Pay
Cambridge University Press, 8/27/2007
EAN 9780521871952, ISBN10: 0521871956
Hardcover, 278 pages, 23 x 15.6 x 2.4 cm
Language: English
Originally published in English
Popular perceptions of executive compensation in the United States are now part of a full-blown mythology fueled by critics who have little direct experience with the inner workings of corporations, their boards, and the executive teams who ultimately shoulder the responsibility for business success or failure. This book documents the realities of executive compensation by investigating the extent to which the pay for performance model governs executive pay levels. It also assesses the relative success of this model in creating value for shareholders and robust job growth for U.S. workers and provides detailed, real-world guidance for designing and executing effective executive compensation plans. Based on extensive empirical research and decades of direct experience in the field, Myths and Realities of Executive Pay settles the debate about executive compensation and the role it plays in the broader U.S. economy.
Prologue
the compensation committee meets
Introduction
the battle over executive compensation
1. The myths and realities of pay for performance
2. The myth of managerial power
3. External pressures
the new context for executive compensation
4. End of an era
the decline of the stock option
5. The future of long-term incentives
6. Executive stock ownership
the solution to the executive compensation crisis
7. Director compensation in the new environment
8. The compensation committee
creating a balance between shareholders and executives
9. Aligning all employee pay to improve corporate performance
10. International executive pay comparisons
Conclusion
the future of executive compensation
Epilogue
back in the boardroom
Appendix A. Legal and regulatory requirement for executive compensation plans
Appendix B. Summary of the regulatory and institutional mandates and recommendations
Appendix C. Academic articles on pay for performance and the executive labor market.