CEO Pay and What to Do about It Restoring Integrity to Both Executive Compensation and Capital-Market Relations |
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| Author:
| Jensen, Michael C.
Murphy, Kevin J. |
| ISBN: | 978-1-4221-0117-9 |
| Publication Date: | Aug 2020 |
| Publisher: | Harvard Business Review Press
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| Book Format: | Hardback |
| List Price: | USD $35.00 |
Book Description:
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This book identifies the critical missing link in incentive plans, link between a manager's effectiveness in executing strategy and the capital market's valuation of the results.
This book proposes a whole new system for incenting managers to act in the best interests of company owners. Reversing his earlier position -- that companies probably weren't paying enough to attract the best executive talent - Jensen and his coauthors are now positing that, in fact, pay...
More Description
This book identifies the critical missing link in incentive plans, link between a manager's effectiveness in executing strategy and the capital market's valuation of the results.
This book proposes a whole new system for incenting managers to act in the best interests of company owners. Reversing his earlier position -- that companies probably weren't paying enough to attract the best executive talent - Jensen and his coauthors are now positing that, in fact, pay packages can be too high and too risk-free, causing otherwise highly talented managers to act in ways that destroy corporate value. The authors have identified the critical missing link in current incentive plans, namely that link between a manager's effectiveness in executing strategy and the capital market's valuation of the results, which they call strategic value accountability. They explain how it works and how to devise a plan that holds top managers accountable for creating long-term strategic value.