We investigate the impact of say-on-pay on 2010 executive compensation, finding affected firms reduced compensation and made it more performance-based, with that decrease being greater for firms that previously overpaid their CEOs. We also find the percentage of votes cast against executive pay...

The objective of CEO compensation is to better align CEO-shareholder interests by inducing CEOs to make more optimal (albeit risky) investment decisions. However, recent research suggests that these incentives have a significant down-side(i.e., they motivate executives to manipulate reported...