Is the Evidence Sufficient to Take Action on Executive Pay? Reply to Commentators
8 Pages Posted: 4 Jul 2013 Last revised: 1 Feb 2014
Date Written: July 3, 2013
The experimental evidence in this collection of papers is sufficient for organizations to take action — at least with respect to investigating or testing alternative pay schemes. Some organizations have already implemented a number of these procedures. The failure of an organization’s directors to follow evidence-based procedures for executive pay might be used as a basis for legal action by shareholders when results are detrimental to a firm.
Keywords: corporate governance, executive compensation, incentives, Mondragon, say-on-pay
JEL Classification: G30, G34, M0, M52, P13
Suggested Citation: Suggested Citation