What's Wrong with Executive Compensation?

Harris, Jared

Abstract

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What's Wrong with Executive Compensation?

Jared D. Harris

University of Virginia - Darden School of Business

2009

Journal of Business Ethics, Vol. 85, pp. 147-156
Darden Business School Working Paper No. 1175382

Abstract:
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, M52

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Date posted: July 31, 2008 ; Last revised: May 3, 2009

Suggested Citation

Harris, Jared D., What's Wrong with Executive Compensation? (2009). Journal of Business Ethics, Vol. 85, pp. 147-156; Darden Business School Working Paper No. 1175382. Available at SSRN: http://ssrn.com/abstract=1175382

Contact Information

Jared D. Harris (Contact Author)

University of Virginia (UVA) - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://faculty.darden.virginia.edu/harrisj