How To Determine If An Executive Compensation Is 'Fair'

Law360, New York (March 22, 2013, 12:26 PM EDT) -- When is an executive fairly paid? From an economic perspective, it depends on the answers to several questions. For example, what other executives’ pay constitutes an appropriate benchmark? Do those benchmark executives perform some different functions or bear some additional risks? Do they manage a larger or smaller, more complex or simpler organization? What is their experience, and how long have they been with their organization? How has the organization performed under their leadership?

Since it would be unusual for a set of executives to work...
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