Strong, independent board is key to fair executive compensation, expert says
Problems with executive compensation generally signal corporate governance issues, expert says.
Federal regulators provide guidance on how companies should set executive compensation, but there is room for variance.
Wages are set by a board’s compensation committee, often after comparing with other similar companies.
While benchmarks are important, the most important factor when setting executive compensation is a strong board of directors, according to Wayne Guay, Yageo Professor of Accounting at the...
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