CEOs are still overpaid? (Pt. 2)

Posted by Marc Hodak on February 8, 2008 under Executive compensation | 3 Comments to Read

Even Megan McCardle laments:

I wish someone had a better answer to the question of why large institutional investors aren’t more active in corporate governance.

Here’s two reasons:

1) Rational apathy
2) Lack of comparative advantage in doing so

  • KipEsquire said,

    Here’s a third: fiduciary duty.

  • sam said,

    I’ve wondered why companies don’t outsource their management to India and China like they do their other functions?

  • M. Hodak said,

    If you mean routine management functions, India and China are the fastest growing market for that, as well. The age of the U.S. management ex-pat is going away.

    As far as top management positions, U.S. CEOs are already competing with top Chinese and Indian talent:

    http://www.sree.net/stories/bt-gupta.html

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