Pay without performance
by Lucian A. Bebchuk · first published 2004
5mentions
1recommended by
2HN commenters
2017–2022first – last mentioned
50% recommend50% neutral
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If you're curious then you'd enjoy reading "Pay without Performance: The Unfulfilled Promise of Executive Compensation" https://www.amazon.com/Pay-Without-Performance-Unfulfilled-C...
on “Intel's CEO Just Sold a Lot of Stock” ↗You might enjoy reading the book "Pay without Performance: The Unfulfilled Promise of Executive Compensation" [1] TLDR: Companies don't engage in arms-length negotiation with CEOs. Shareholders don't hold companies to account for various structural reasons. [1] http://www.pay-without-performance.com/
on “Twitter CEO fires two top executives, freezes hiring” ↗…fellow member of the nobility? A number of explanations have been posited for the fact executive pay has soared in recent decades while other workers' pay has remained stagnant. Bebchuk and Fried's "Pay without Performance" attribute this to the fact that boards routinely approve pay packages that serve the CEO rather than shareholders, instead of bargaining with the aim of maximising shareholder wealth. They identify…
on “Mayer $23M golden parachute as Yahoo names post-Verizon deal executive team” ↗…perfect, but that's another problem that needs fixing. Also, you asked for a source but failed to provide a single one for any of the many many assertions that you have made. [0]: https://www.amazon.com/Pay-without-Performance-Unfulfilled-C... [1]: https://www.amazon.com/Inequality-What-Can-Be-Done/dp/067450... [2]: https://www.amazon.com/Dark-Money-History-Billionaires-Radic...
on “Apple plans to spend $1B to support advanced manufacturing jobs in the U.S” ↗…payments [2]. * The few large institutional shareholders don't seem inclined to do much about corporate governance. Some such as CalPERS have done things effectively in the past. [1] https://www.amazon.com/Pay-Without-Performance-Unfulfilled-C... [2] One example the book gives is a CEO whose pension terms were modified so that it the rate was based on his highest-paid year, with pay defined to include income he made from exercising…
on “Sears to pay $25.3M in bonuses to top execs after filing for bankruptcy” ↗