Dialogue

The latest reporting, opinion and research on executive compensation. We don’t necessarily agree with it all, but we provide it here for consideration.

Subscribe to Dialogue
Week of
September 12, 2016

Quick Picks

The Broader Implications of the Wells Fargo Scandal

The recent Wells Fargo turmoil over the creation of fake accounts by employees in order to reach sales targets has brought compensation regulation at both the commission sales level and executive level into the spotlight. Authors Kate Berry and Kevin Wack dig into the underlying incentives that may have caused the scandal and cite culture as an additional possibility. Author Jesse Hamilton observes that these developments come at a crucial time for compensation regulation and may act as additional pressure to toughen proposed rules.

Corporate Executives Are Making Way More Money Than Anybody Reports | The Atlantic | September 15, 2016

Authors William Lazonick and Matt Hopkins explore the apparent disconnect between the SEC-sanctioned “estimated fair value” (EFV) of executives’ stock-based pay and their actual realized gains (ARG). They claim this disconnect has led to gross underestimates of how much executives are actually paid. They argue that this underestimation is caused by EFV’s calculation methodology, which values stock-based pay in advance of any gains and fails to capture stock-price increases. Read more

Compensation Trends + Developments

Regulation, Legislation + Governance

From Critics + Commentators