Executive Pay Norms in the U.S

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The matter of executive pay norms in the corporate world has been in the center of public interest for many years. Researchers, practitioners and investors alike have recognized its importance. Public interest grew in similar ratio to the dramatic increase in executive pay in the past twenty years.

The recent financial crisis is, by far, the deepest economic crisis since 1929. The "shock waves" that started in the summer of 2007 hit almost every economy on the face of the earth, leaving behind it a path of destruction. Although there are many reasons that might explain how the biggest and richest economy in the world was brought to its knees, dragging the rest of the world after it, compensation is definitely among the first on the list. Compensation in significant financial institutions is one factor among many that contributed to the creation of the financial crisis that began in 20072, but its roots were planted long before.

Executive compensation, it is now acknowledged, led the executives of the biggest financial institutes in the world to buy and sell

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Amit Yalov | Attorney Advertising

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