Journal Article
Goldilocks in the corner office
Abstract: The proper level of CEO compensation is more complicated than some normative sense of what the public considers fair. But with CEO pay regularly reaching eight, even nine figures, could current levels possibly be efficient? Economists can make a good theoretical case that CEO pay is inefficient, but they've had trouble pinpointing the systematic rent (pay in excess of fair market value) being extracted by CEOs. While it might not lower CEO pay, better corporate governance is likely the key to ensuring that it is tied tightly to firm performance.
Keywords: Business; Corporate governance; Wages; Business ethics;
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Bibliographic Information
Provider: Federal Reserve Bank of Minneapolis
Part of Series: The Region
Publication Date: 2006
Volume: 20
Issue: Dec
Pages: 22-25, 32-35