Corporate governance reform and CEO compensation: Intended and unintended consequences [Book Review]

Journal of Business Ethics 62 (2):101 - 113 (2005)
Recent scandals allegedly linked to CEO compensation have brought executive compensation and perquisites to the forefront of debate about constraining executive compensation and reforming the associated corporate governance structure. We briefly describe the structure of executive compensation, and the agency theory framework that has commonly been used to conceptualize executives acting on behalf of shareholders. We detail some criticisms of executive compensation and associated ethical issues, and then discuss what previous research suggests are likely intended and unintended consequences of some widely proposed executive compensation reforms. We explicitly discuss the following recommendations for reform: require greater independence of compensation committees, require executives to hold equity in the corporation, require greater disclosure of executive compensation, increase institutional investor involvement in corporate governance (including executive compensation), and require firms to expense stock options on their income statements. We provide a brief summary discussion of ethical issues related to executive compensation, and describe possible future research.
Keywords corporate governance  executive compensation  independent compensation committee  institutional investor  stock-based compensation
Categories (categorize this paper)
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
Download options
PhilPapers Archive

Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 22,660
External links
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library
References found in this work BETA
Matt Bloom (2004). The Ethics of Compensation Systems. Journal of Business Ethics 52 (2):149-152.

Add more references

Citations of this work BETA

View all 20 citations / Add more citations

Similar books and articles
John Dobson (2011). A Moral and Economic Defense of Executive Compensation. Business and Professional Ethics Journal 30 (1-2):59-70.
Mel Perel (2003). An Ethical Perspective on CEO Compensation. Journal of Business Ethics 48 (4):381-391.

Monthly downloads

Added to index


Total downloads

62 ( #73,789 of 1,938,852 )

Recent downloads (6 months)

4 ( #163,235 of 1,938,852 )

How can I increase my downloads?

My notes
Sign in to use this feature

Start a new thread
There  are no threads in this forum
Nothing in this forum yet.