Cover: Pay without Performance: The Unfulfilled Promise of Executive Compensation, from Harvard University PressCover: Pay without Performance in PAPERBACK

Pay without Performance

The Unfulfilled Promise of Executive Compensation

Add to Cart

Product Details

PAPERBACK

$31.50 • £25.95 • €28.50

ISBN 9780674022287

Publication Date: 09/30/2006

Short

304 pages

6-1/8 x 9-1/4 inches

World

The company is under-performing, its share price is trailing, and the CEO gets…a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers’ influence over their own pay—and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders.

Lucian Bebchuk and Jesse Fried demonstrate that corporate boards have persistently failed to negotiate at arm’s length with the executives they are meant to oversee. They give a richly detailed account of how pay practices—from option plans to retirement benefits—have decoupled compensation from performance and have camouflaged both the amount and performance-insensitivity of pay. Executives’ unwonted influence over their compensation has hurt shareholders by increasing pay levels and, even more importantly, by leading to practices that dilute and distort managers’ incentives.

This book identifies basic problems with our current reliance on boards as guardians of shareholder interests. And the solution, the authors argue, is not merely to make these boards more independent of executives as recent reforms attempt to do. Rather, boards should also be made more dependent on shareholders by eliminating the arrangements that entrench directors and insulate them from their shareholders. A powerful critique of executive compensation and corporate governance, Pay without Performance points the way to restoring corporate integrity and improving corporate performance.

Recent News

Black lives matter. Black voices matter. A statement from HUP »

From Our Blog

Photograph of Lessons from Plants, by Beronda L. Montgomery, from Harvard University Press, placed on sunny table next to leafy green potted plant and desk organizer

What Have We Learned from Plants?

For Beronda L. Montgomery, the author of Lessons from Plants, the undisturbed growth of plants has been a reminder that life moves along, even in the most difficult times. In her new book, Montgomery shows how plant behavior and adaptation can offer valuable insights for human thriving. Her recent article in Elle on how plants have been a beacon of hope for her and many others during the pandemic inspired us at Harvard University Press to think about how plants have also helped us during this past year of working from home