Thursday, April 20, 2006

Do boards influence CEO compensation?


Kam-Ming Wan of the University of Texas at Dallas does not appear to think they do.

Dr.Wan's research findings are that:

"ownership and board characteristics have little impact on executive pay. In particular, managers are not paid less and corporate performances are not improved for boards with more representation by independent directors."

Australian evidence presented by researchers Evans and Evans is consistent with this finding:

See full Article.