Journal Article

Because I'm worth it? CEO pay and corporate governance

Abstract: Recently, there has been strong public outrage against current pay practices for corporate CEOs. To deal with this issue, the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law by President Obama on July 21, 2010 will allow shareholders to vote on executive pay packages and federal regulators to oversee executive compensation at financial firms. Are there problems with CEO pay? According to a recent survey, 98 percent of respondents from major financial institutions ?believe that compensation structures were a factor underlying the crisis.? In ?Because I?m Worth It? CEO Pay and Corporate Governance,? Rocco Huang outlines what we know about how CEOs are paid, how the pay is set, how CEO compensation affects CEOs? incentives and actions and their firms? performance, and how government regulations affect CEO pay.

Keywords: Corporate governance; Regulation; Executives - Salaries;

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Business Review

Publication Date: 2010

Issue: Q3

Pages: 12-19