Journal of Economic Perspectives: Vol. 13 No. 4 (Fall 1999)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


JEP - All Issues

Executive Compensation: Six Questions That Need Answering

Article Citation

Abowd, John M., and David S. Kaplan. 1999. "Executive Compensation: Six Questions That Need Answering." Journal of Economic Perspectives, 13(4): 145-168.

DOI: 10.1257/jep.13.4.145


This article address six questions concerning executive compensation, drawing on recent advances in the study of executive compensation, including the role of stock and option holdings: How much does executive compensation cost the firm? How much is executive compensation worth to the recipient? How well does executive compensation work? What are the effects of executive compensation? How much executive compensation is enough? Could executive compensation be improved? Our discussion will focus on the role of agency theory, which predicts that stock-based compensation will align executive and shareholder interests by linking the executive's compensation directly to increases in the market value of the company.

Article Full-Text Access

Full-text Article (Complimentary)


Abowd, John M. (Cornell U, US Census Bureau, and NBER)
Kaplan, David S. (Bureau of Labor Statistics)

JEL Classifications

M12: Personnel Management; Executive Compensation


View Comments on This Article (0) | Login to post a comment

Journal of Economic Perspectives

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


JEP - All Issues

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us