Pay Without Performance News Today

Reprinted with permission from A new study shows that the top five executives of major corporations pocketed 15 to 19 cents of every dollar their companies gained from two recent tax cuts. The paper, by Eric Ohrn at Grinnell College, should be a really big deal. The basic point is CEOs and other top executives rip off their companies. The officers are not worth the $20 million or more that many of them pocket each year. This is not a moral judgment about their value to society. It is a simple d...

Don’t Let the Short-Termism Bogeyman Scare You Summary.    The author, a professor at Harvard Law School, argues that concerns about the perils of short-termism—and support for measures that would insulate corporate leaders from the outside pressures that allegedly make them myopic—are long on alarming rhetoric and short on empirical evidence or economic logic. Furthermore, he writes, the threat of hedge fund activism should be expected to discourage managerial slack and underperform...