The company is underperforming, its share price is trailing, and the CEO gets ...a multimillion-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. "Pay without Performance" presents a disconcerting portrait of managers' influence over their own pay - and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders.
Lucian Bebchuk is Professor of Law, Economics, and Finance and Director of Program on Corporate Governance at Harvard Law School. Jesse Fried is Professor of Law and Co-Director of the Berkeley Center for Law, Business, and the Economy at the University of California, Berkeley.