1. Articles from Robert C. Pozen and S.P. Kothari

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    1. If the CEO is Overpaid, Blame the Compensation Committee

      If the CEO is Overpaid, Blame the Compensation Committee

      Every year, shareholders of U.S. companies weigh in on executive pay by casting advisory votes on the reports of compensation committees. The committees are appointed by corporate boards to make recommendations about appropriate pay levels. Shareholders tend to take their reports at face value, voting to approve them in over 97% of cases. But their confidence is undermined by a lack of awareness about the often flawed methods compensation committees use to determine pay...

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