The negative aspects of large CEO pay and the associated incentives have been a hot political issue in many countries. Our research identifies some positive aspects of CEO incentives in a broader economic/societal context that have been overlooked. In a five-year longitudinal study across major free-market nations in Asia, Europe, and the Americas, we find when a higher proportion of CEOs in a nation receive incentives, that nation’s GDP increases significantly in the following years, independent of the incentives monetary value.
Harvard Law School Forum on Corporate Governance and Financial Regulation
CEO Incentives Shown to Yield Positive Societal Benefits
Popular Science
Reference
Oxelheim, Lars (2019). “CEO Incentives Shown to Yield Positive Societal Benefits”. Harvard Law School Forum on Corporate Governance and Financial Regulation, August 26.
Oxelheim, Lars (2019). “CEO Incentives Shown to Yield Positive Societal Benefits”. Harvard Law School Forum on Corporate Governance and Financial Regulation, August 26.
Author
Lars Oxelheim