CEO Pay And What to Do About It
Restoring Integrity to Both Executive Compensation And Capital-market Relations
Published on 1. August 2025
Book
Hardback
256 pages
978-1-4221-0117-9 (ISBN)
Description
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.
More details
Language
English
Place of publication
Boston
United States
Publishing group
Harvard Business School Publishing
Target group
Professional and scholarly
Product notice
Laminated cover
Illustrations
Illustrations
Dimensions
Height: 235 mm
Width: 156 mm
Thickness: 14 mm
ISBN-13
978-1-4221-0117-9 (9781422101179)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Persons
Michael Jensen is currently Jesse Isidor Straus Professor of Business Administration, Emeritus, at Harvard Business School; Managing Director of the Organizational Strategy Practice at the Monitor Company; a Fellow of the European Corporate Governance Institute; and co-founder and Chair of Social Science Electronic Publishing, Inc. Kevin J. Murphy is currently the E. Morgan Stanley Chair in Business Administration, the Vice Dean for Faculty and Academic Affairs at the University of Southern California Marshall School of Business, a professor of finance and business economics at the Marshall School, a professor of business and law in the USC Law School, and a professor of economics in the USC Economics Department. Eric G. Wruck is founder of Econalytics, which applies economic, financial, and statistical expertise to questions of business and public policy. Dr. Wruck received a Ph.D. and an M.S. in Marketing from the Johnson Graduate School of Management at Cornell University.