CEOs are paid less when more effective compensation committees monitor the CEO compensation setting process. This result is noteworthy because the monitoring effects arising from greater independence of the compensation committee is distinct and separate from that arising from board independence.
HOW much should a chief executive be paid? CEO compensation is a topic that draws much interest, even contention, not least because of the brow-raising numbers that hog the headlines.
While salary is accepted generally as a reasonable incentive for head honchos to run the organisation...