instrument for addressing the agency problem between managers and shareholders but also as part of the agency problem itself …. Boards of publicly traded companies with dispersed ownership, we argue, cannot be expected to bargain at arm’s length with … managers. As a result, managers wield substantial influence over their own pay arrangements, and they have an interest in …

power approach suggests that boards do not operate at arm’s length in devising executive compensation arrangements; rather … constraints that act on these processes, leave managers with considerable power to shape their own pay arrangements. Examining the …

. But, the results suggest that institutional investors' equity holdings tend to <p> protect managers from replacement. …