2005 Archive

A Failure in Governance: Why Executive Pay Is Still Broken

Jesse Fried, faculty co-director of Boalt Hall's Berkeley Center for Law, Business and the Economy (BCLBE), points to a systemic failure in corporate governance as the chief culprit in runaway pay packages. In an interview with BCLBE on his new book, Pay Without Performance, co-written with Harvard's Lucian Bebchuk, Fried says the problem with executive compensation arrangements is not "a few bad apples, it's the entire barrel." Furthermore, he says, the first wave of reforms adopted to deal with the issue "fall short of what's necessary" to fix it. 7/14/2005