What's Wrong with Executive Compensation?
Jared D. Harris
University of Virginia - Darden School of Business
Journal of Business Ethics, Vol. 85, pp. 147-156
Darden Business School Working Paper No. 1175382
I broadly explore the question by examining several common criticisms of CEO pay through both philosophical and empirical lenses. While some criticisms appear to be unfounded, the analysis shows not only that current compensation practices are problematic both from the standpoint of distributive justice and fairness, but also that incentive pay ultimately exacerbates the very agency problem it is purported to solve.
Number of Pages in PDF File: 22
Keywords: Executive compensation, distributive justice, pay disparity, incentive alignment
JEL Classification: D63, J23, J31, J33, J38, J44, M51, M52Accepted Paper Series
Date posted: July 31, 2008 ; Last revised: May 3, 2009
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