Bebchuk, Lucian Arye; Fried, Jesse; Walker, David I - C.E.P.R. Discussion Papers - 2001
This Paper develops an account of the role and significance of rent extraction in executive compensation. Under the … optimal contracting view of executive compensation, which has dominated academic research on the subject, pay arrangements are … more than is optimal for shareholders and, to camouflage the extraction of rents, executive compensation might be …