Effective Communication on Compensation
Simon C. Y. Wong
Northwestern University School of Law; Governance for Owners; London School of Economics
Governance, No. 191, October 2009
Financial incentives are important tools for aligning the interests of executives and shareholders, particularly in markets with dispersed share ownership where investors struggle to actively monitor management. Today, however, there is widespread investor dissatisfaction with executive compensation, not least the role of the board of directors in setting pay.
This article provides practical suggestions to boards on improving communication with shareholders on compensation arrangements.
Number of Pages in PDF File: 2
Keywords: Corporate governance, compensation, shareholder communication
JEL Classification: G34, G35Accepted Paper Series
Date posted: December 22, 2009
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