Article   |   Volume 158, Issue 7

Paying for Long-Term Performance

Lucian A. Bebchuk & Jesse M. Fried

June 2010

In the aftermath of the financial crisis, regulators, firms, and investors are seeking to put in place executive pay arrangements that avoid rewarding executives for short-term gains that do not reflect long-term performance. This Article seeks to contribute to these efforts by analyzing how pay arrangements can and should best be tied to long-term performance. Our analysis focuses on equity-based compensation, the most important component of executive pay arrangements.

Paying for Long-Term Performance -

Responses to this Article
Lawrence E. Mitchell

Steven N. Kaplan