Earlier this week, we were delighted to learn that U.S. Vice-President Joe Biden referenced one of our articles in his opinion piece in the Wall Street Journal (WSJ) entitled “How Short-Termism Saps the Economy.”
“Short-termism—the notion that companies forgo long-run investment to boost near-term stock price—is one of the greatest threats to America’s enduring prosperity,” Biden writes.
Further down the piece, the WSJ links to an article in the Annual Review of Financial Economics entitled “CEO Compensation,” written by expert authors Carola Frydman and Dirk Jenter. In it, they describe the evolution of CEO pay and discuss the impact of the oftentimes direct link between share price and compensation.
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