Why it doesn’t—and shouldn’t—always pay to be a super-successful CEO

Are corporate boards acting as stabilizing forces for their firms, or enablers of extreme greed? That’s one of the questions implied by current debates about so-called “runaway CEO pay.” It’s not entirely clear how the CEO incentives set by the board can be squared with its fiduciary duty to safeguard long-term shareholder value. That’s largely due to the mystery surrounding how CEO compensation is determined in the first place.

This article is brought to you by Phys.Org.