Does the Composition of the Compensation Committee Influence CEO Compensation Practices?

Harry A. Newman and Haim A. Mozes

Financial Management, 1999, vol. 28, issue 3

Abstract: CEOs receive preferential treatment, at the expense of shareholders, when corporate insiders are included on the compensation committee. While CEO compensation is not greater, the relation between CEO compensation and corporate performance is more favorable to the CEO with insiders on the compensation committee when corporate performance is poor.

Date: 1999
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