I spilled the beans regarding the titular question this Fall at an NACD event.
The talk was split into two TED-sized portions of about 20 minutes each. Part I is what the research suggests about pay practices, i.e., which practices are effective, which are probably a waste of money, and which actually hurt the shareholders. Part II explains the causal mechanism behind the most surprising research finding–that today’s bonus plans, on average, add no value to corporate performance.
The feedback was extremely gratifying. A couple of directors described the discussion about bonus plans and proxy advisory standards as “a tour de force.”
There is also a final part that includes the Q&A.