TITLE

Reflections on CEO Compensation

AUTHOR(S)
Bogle, John C.
PUB. DATE
May 2008
SOURCE
Academy of Management Perspectives;May2008, Vol. 22 Issue 2, p21
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The author responds to congressional testimony by Chicago University professor Steven N. Kaplan on compensation for executives. He refutes Kaplan's assertions that the salaries of chief executive officers (CEOs) have grown based on corporate profits and economic conditions in the U.S. He disagrees with Kaplan's comparison of CEO salaries to those of athletes and hedge fund investors, noting that shareholders have little authority in determining the salaries of CEOs or in other matters of corporate governance. He also discounts Kaplan's claims regarding how stock prices dictate CEO salary increases, claiming stock prices are not an accurate indicator of firm performance in the short-term and suggesting incentive pay for CEOs should be distributed over time.
ACCESSION #
32739756

 

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