Myths of Executive Compensation

Hodak, Marc
April 2010
NACD Directorship;Apr/May2010, Vol. 36 Issue 2, p66
The article discusses myths about executive compensation. Due to failure to distinguish truth from myth, policies were made that hurt rather than help shareholders. Some of the myths addressed by the author include widespread coverage about bonuses reflects grave concerns about corporate governance, overpaid chief executive officers (CEO) equated with greediness, CEOs taking advantage of boards, the collapse of the financial system is caused by problems created by perverse incentives in firms, and bonuses are offered to align pay with performance.


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