Public criticism ofexecutive pay has increased significantly inrecent years. Shareholders express concernthat the level of pay to many executives doesnot match the level of increase in shareholderwealth. The government has even gotteninvolved in the issue by changing tax lawsrelated to...

Recent changes in the legal environment faced by US corporations suggest that the shareholder-manager conflict of interest, and the effectiveness of mechanisms to narrow this divergence, are issues of continuing importance. This study examines the linkages between institutional, market and legal...