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Retirement Plan Legal Specialist Pentegra
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Retirement Plan Relationship Manager ERISA Services, Inc.
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Nova 401(k) Associates
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Central Pension Fund of the IUOE
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| New Study by Economists Questions Ability of Market Forces to Regulate CEO Pay in Corporate America The Economist  July 18, 2002 Excerpt: The key assumption of the [prevailing optimal-contracting theory] is that managers and shareholders, in effect, negotiate at arm's length over pay. Basic training in economics is needed to blind one to the absurdity of this assumption. Top managers direct or at the very least influence the board members who set their pay: that means they will succeed in collecting some rent. The only question is how much. |
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