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The pros and cons of rewarding social responsibility at the top

✍ Scribed by Pascual Berrone; Luis R. Gomez-Mejia


Publisher
John Wiley and Sons
Year
2009
Tongue
English
Weight
128 KB
Volume
48
Category
Article
ISSN
0090-4848

No coin nor oath required. For personal study only.

✦ Synopsis


Abstract

Overemphasis on financial performance criteria to award incentives for CEOs has often been mentioned as one of the main culprits behind recent corporate scandals. In response, there is a growing chorus for inclusion of social performance criteria in the design of executive compensation schemes. To date, however, very little is known about the true benefits of this practice. This article critically discusses the potential advantages and pitfalls of this recommendation. Β© 2009 Wiley Periodicals, Inc.


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