TITLE

Why CEO Compensation Is So High

AUTHOR(S)
Crystal, Graef S.
PUB. DATE
September 1991
SOURCE
California Management Review;Fall91, Vol. 34 Issue 1, p9
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article looks at the compensation of chief executive officers in the United States. Several factors leading to the high wages of executives are discussed. Compensation consultants, company boards of directors, and board compensation committees are identified as the main factors held responsible. A board compensation committee typically consists of about five outside directors not employed by the company who have no economic ties with the company. The field of executive compensation consulting is discussed, noting the popular belief that executive pay should be tied to a company's shareholder concerns such as rising stock prices.
ACCESSION #
5616282

 

Related Articles

  • The Causes and Consequences of the Global Inflation of CEO Salaries. Lansing, Paul; Knoedgen, Sascha // International Journal of Management;Mar2007, Vol. 24 Issue 1, p70 

    Since the 1980's, CEO salaries have increased to ‘stratospheric’ heights. While the job has become more complex, the rise of stock options and friendly board of directors has fueled this rise in CEO salaries. Globalization of business has now made this a worldwide phenomenon. The...

  • CEO Compensation in Canada, 1971-2008. Gélinas1, Patrice; Baillargeon, Lisa // International Journal of Business & Management;Jun2013, Vol. 8 Issue 12, p1 

    This paper draws from a unique database spanning over 35 years of Canadian CEOs' compensation to explore the interplay among: the information available to boards of directors of Canadian companies for making executive pay decisions, the Canadian business environment, and the compensation that...

  • Director Pay Developments in Smaller and Private Companies. Richard, J. E. // Directors & Boards;Spring89, Vol. 13 Issue 3, p35 

    The article discusses the reasons behind the sudden developments of director pay in special-situation companies in the U.S. Accordingly, these developments are propelled by the need for more capable board members, the need for more independent outside directors and the need for more strategic...

  • CEO Monitoring and Board Effectiveness: Resolving the CEO Compensation Issue. BEN ALI, CHIRAZ; TEULON, FRÉDÉRIC // Management International / International Management / Gestión I;winter2017, Vol. 21 Issue 2, p123 

    This study examines the impact of board governance mechanisms on the pay of Chief Executive Officers (CEOs) using a sample of major French listed companies for the 2009-2011 period. The results show that CEO pay is negatively associated with the presence of a family CEO and positively associated...

  • CEO TENURE AS A DETERMINANT OF CEO PAY. Hill, Charles W. L.; Phan, Phillip // Academy of Management Journal;Sep91, Vol. 34 Issue 3, p707 

    Our hypotheses were that the influence of chief executive officers (CEOs) over boards of directors and the likelihood that the CEOs' compensation packages will reflect their preferences increase with CEO company tenure. Results of empirical tests were consistent with this argument, suggesting...

  • From The Editor. Narayan, Sanjoy // Business Today;7/1/2007, Vol. 16 Issue 13, p4 

    The author reflects on the high salaries of chief executive officers (CEO) in India. Compensation for executives increases as the country emerges as the fast-growing market for the world's luxury brands. The supply and demand for managers, as well as the rising trend contributed to the rise in...

  • Brother, can you spare a dime? MURPHY, H. LEE // Crain's Chicago Business;8/19/2013, Vol. 36 Issue 33, p0001 

    The article focuses on developments related to salaries and compensation of chief executive officers (CEO) of publicly traded companies in Chicago, Illinois, as of August 19, 2013. It highlights the increase in CEO compensation during the years 2009 and 2010. Changes in how CEOs in the state are...

  • COMING DOWN TO EARTH. RYTERBAND, DANIEL J. // Conference Board Review;Spring2010, Vol. 47 Issue 3, p24 

    The article expresses the view that the pay gap between chief executive officers (CEOs) in the U.S. and abroad is narrowing, and explains why this is so. The author believes that board compensation committees in the U.S. are giving greater consideration to what is both affordable and justifiable...

  • CEO compensation: Turning conventional wisdom on its head (almost). Chowdhury, Shamsud D.; Wang, Eric // Ivey Business Journal;Nov/Dec2004, Vol. 69 Issue 2, p1 

    Contrary to conventional wisdom, a CEO's fixed salary, or non-contingent pay, has not increased in recent years. In fact, a CEO's fixed salary, as a proportion of his or her total compensation, has been decreasing. Moreover, the greater the independence of a compensation committee, the more a...

Share

Read the Article

Courtesy of NEW JERSEY STATE LIBRARY

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics