Executive compensation has gained widespread public attention in
recent years, with the pay of top U.S. executives reaching
unprecedented levels compared either with past levels, with the
remuneration of top executives in other countries, or with the
wages and salaries of typical employees. The extraordinary levels
of executive compensation have been achieved at a time when U.S.
public companies have realized substantial gains in stock market
value. Many have cited this as evidence that U.S. executive
compensation works well, rewarding managers who make difficult
decisions that lead to higher shareholder values, while others have
argued that the overly generous salaries and benefits bear little
relation to company performance. Recent conceptual and empirical
research permits for the first time a truly rigorous debate on
these and related issues, which is the subject of this volume.
General
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