Executive Compensation: Over the Top or On Track?

A recent issue of the Wall Street Journal had two front page stories one on executive compensation and the other on backdating of stock options. The headline for the first was ”Behind Soaring Executive Pay Decades of Failed Restraints ” the implication being that executive compensation is out of control and seems to resist all attempts to rein it in. Wharton accounting professor Wayne Guay talks with Knowledge at Wharton about his views on executive compensation including the role of stock options in rewarding top managers.

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