This primer on CEO pay by Susan Holmberg and Michael Umbrecht serves to unpack this complicated topic by:
- explaining the problems with CEO pay, including the harm it imposes on workers, businesses, and society;
- highlighting some of the early history of CEO pay, including a handful of the key policies that have shaped it;
- presenting the main theories that attempt to explain why CEO pay has risen so dramatically;
- addressing the fallacy of shareholder primacy and introduces the stakeholder model; and
- concludes by highlighting some policy recommendations that are outside of the shareholder primacy framework.