"Say on Pay": A Wolf in Sheep's Clothing?

Mangen, Claudine; Magnan, Michel
May 2012
Academy of Management Perspectives;May2012, Vol. 26 Issue 2, p86
Academic Journal
This paper debates whether "Say on Pay" can fix executive pay. We argue that Say on Pay benefits executive pay when shareholders' voice offsets CEO power and mitigates directors' information deficiencies. We warn, however, that Say on Pay may raise two novel problems. First, executive pay may harm stakeholders whose interests differ from those of shareholders influential in pay setting. Second, boards may resist shareholders' intervention in pay setting and, as a result, manage compensation disclosures to ensure a passing shareholder vote. Consequently, Say on Pay may not only fail to remedy suboptimal pay but also legitimize it.


Related Articles

  • TAKING THE LID OFF CEO PAY. Caulkin, Simon // Management Today;Apr2012, p40 

    The article focuses on chief executive officer (CEO) compensation in 2012. Topics include how the market economy impacts the amount that executives can command from corporations, the benefits and downfalls of equity-based compensation packages, and how high executive pay has shaped the economy...

  • Shock and awe over CIPD top job pay packet.  // Personnel Today;5/1/2007, p1 

    The article reports that the £500,000 salary packaged on offer to the new director general of the Chartered Institute of Personnel and Development (CIPD) has gained mass reaction to individuals in Great Britain. According to a survey, a record number of respondents said the wage on offer to...

  • HR CHIEFS ARE PRICIER BY THE POUND. Hansen, Fay // Workforce Management;May2005, Vol. 84 Issue 5, p30 

    Discusses a study conducted by Mercer Human Resource Consulting in 2005, which revealed the excessive compensation packages received by human resource (HR) executives in Great Britain compared with other countries. Comparison of bonus received by HR executives between Great Britain and the...

  • C-Suite Salary.  // Business Today;8/16/2015, Vol. 24 Issue 16, following p28 

    An introduction is presented in which the editor discusses articles within the issue on topics such as high salaries paid to the chief executives of Indian companies and whether such salaries are justified or nor.

  • REFLECTIONS ON EXECUTIVE COMPENSATION. Bruvik, Kenneth; Gibson, Jane Whitney // Summer Internet Proceedings;Jun2010, Vol. 12, p132 

    Few issues evoke as much controversy in Human Resource Management as executive compensation. This paper will examine the origins of executive compensation, the various components, theories used to determine compensation, and implications for managers. Because of the current economic condition...

  • Pop Economics. WILLIAMSON, KEVIN D. // National Review;10/19/2009, Vol. 61 Issue 19, p16 

    In this article the author discusses the efforts to reform compensation practices of banking executives. U.S. President Barack Obama and other world leaders met at the Group of 20 summit in Pittsburgh, Pennsylvania to discuss this topic. Particular attention is given to an academic study from...

  • Pay for performance is the only way forward. Philpott, John // Personnel Today;7/8/2003, p15 

    Strengthened by government regulatory changes that have opened up access to information on executive remuneration and provided new rights to vote on reward packages, shareholders have been keen to hold company boards to account to ensure executive pay reflects performance in Great Britain. More...

  • DO YOU GET WHAT YOU PAY FOR? COMPENSATION OF NEW CEOS HIRED IN TURNAROUND SITUATIONS. CHEN, GUOLI // Academy of Management Annual Meeting Proceedings;2009, Vol. 2009 Issue 1, p1 

    This paper investigates the initial compensation package of new CEOs hired in turnaround situations. I find that firms in turnaround situations pay their new CEOs more than do comparable firms that are not in turnaround situations, and that they tend to use a higher percentage of stock-based...

  • Someone old, someone new... Nichols, Mark // Corporate Detroit;Sep95, Vol. 13 Issue 9, p51 

    Focuses on CEOs' attitude towards long-term employees. Treatment on new hirees; Reasons that motivate new hirees; Factors that contribute to an effective interaction with the long-term staffer.


Read the Article


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

Try another library?
Sign out of this library

Other Topics