Dim the Spotlight

This article argues that the increasing focus on pay by policymakers, shareholders, and the media has magnified its importance as a gauge of success for top executives and created a vicious cycle of ever-higher pay demands. It suggests ways for policymakers, shareholders, and boards of directors to de-emphasize monetary incentives, with the view to moderating the rapid ascent of executive compensation.This article is an expanded version of the March 2012 Harvard Business Review Online commentary, available at "http://ssrn.com/abstract=2040858" http://ssrn.com/abstract=2040858