This is the second paper in a series exploring the empirical evidence arising from the increasing use of certain executive compensation best practices. The first paper, “How Good are our “Best Practices” When it Comes to Executive Compensation?,” summarizes research finding that these...

The recent growth in executive compensation plays a significant part in discussions of corporate governance. The dominant narrative uses agency cost theory to explain executive pay in terms of self-dealing executives and directors too weak or conflicted to stop them. The wide-spread acceptance...