Reappraising the Problem of CEO Compensation: Modern and Old Theoretical Perspectives
Benjamin Chapas and
Virgile Chassagnon
Journal of Economic Issues, 2021, vol. 55, issue 3, 760-778
Abstract:
CEO compensation is a controversial issue. In recent decades, the mainstream theory of corporate governance has failed to produce a convincing explanation of the factors that shape the CEO compensation process, which, according to managerial power theory, is largely determined by the CEO’s discretionary power. These problems are increasing in the era of corporate social responsibility. This article’s objective is to show that we can better understand the problem of CEO compensation by reconsidering the various contributions of older research that focused on uncertainty and entrepreneurial action on the one hand and on industrial sabotage and reasonable values on the other. This objective is a prerequisite to rethinking CEO compensation in relation to the challenges of modern production, to the necessary development of an industrial democracy in our market societies, and to constructing a solid theoretical basis from which to reconsider CEO compensation in relation to the true mission of CEOs and to a normative vision for reform. Thus, this article provides theoretical and conceptual bases for a renewed academic debate that will allow for explanatory progress regarding the understanding of the place that the issue of CEO compensation holds in the emergence of a more just version of capitalism.
Date: 2021
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/00213624.2021.1948263 (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Reappraising the Problem of CEO Compensation: Modern and Old Theoretical Perspectives (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:mes:jeciss:v:55:y:2021:i:3:p:760-778
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MJEI20
DOI: 10.1080/00213624.2021.1948263
Access Statistics for this article
More articles in Journal of Economic Issues from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().