Incentives for the Long Run: An Executive Compensation Plan That Looks Beyond the Next Quarter

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Published May 27, 2009 in Knowledge at Wharton.

The public outrage over bonuses paid to AIG executives, and resulting government proposals to cap pay at companies receiving federal bailouts, illustrate rising concerns about executive compensation. Indeed, some analysts contend that ineffective compensation structures encouraged Wall Street executives to take on excess risk in the hopes of winning huge payouts, which in turn contributed to the continuing financial crisis and recession.

Link to full article.

Read Grahall’s Micahel Dennis Graham’s Expert Perspective on this subject.

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