| Author: | Brenner, S. Schwalbach, J. |
| Title: | Legal institutions, board diligence, and top executive pay |
| Journal: | Corporate governance
2009 : JAN, VOL. 17:1, p. 1-12 |
| Index terms: | board of directors corporate governance executive remuneration management compensation pay USA |
| Language: | eng |
| Abstract: | This paper explores whether the diligence of directors in setting the CEO compensation is affected by anti-director laws and legal director liability rules. Based on a data set covering 27 countries from 1995 to 2005, it is found that independent of managerial risk-aversion, CEO pay is always less generous under stricter anti-director rules and a stronger rule of law. Director liability rules are associated with more generous pay schemes etc. |
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