Executive pay's faulty market

Otten, Jordan
March 2008
European Business Forum;Spring2008, Issue 32, p8
The author talks about the excessively generous pay packages for executives. He discusses the reasons despite the efforts of many nations to introduce legislation, such as regulating executive pay disclosure and bringing corporate governance codes into line with best practice, the efforts have not been successful. He finds faults with some of the theories which have been put forward to explain executive pay practices. He also suggests a more useful explanation for pay practices, which come from looking at the actual decision-making process.


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