Board independence and CEO pay [An article from: Economics Letters]

This digital document is a journal article from Economics Letters, published by Elsevier in . The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
This paper presents a model where a board of directors not completely independent from the CEO set the CEO's pay. We show that the board's monitoring intensity and the equilibrium pay-performance sensitivity of CEO's pay are increasing in the board's independence.