Research Summary

Executive Compensation

by Tatiana Sandino

Description

Professor Sandino analyzes the process by which executive pay is set, the different constituencies that influence this process, and the circumstances that may lead to more or less effective compensation packages. Understanding these matters is not only relevant to academics but also to regulators, investors, and the public in general, who have increasingly questioned the levels of executive pay in the United States and the incentives created by executive compensation packages. According to some critics, executive compensation plans contributed to triggering various financial crises over the past decade. Following this line of research, Professor Sandino has assessed the impacts on executive pay of shareholder activism, various uses of compensation consultants, and fraud in peer firms.