Myths and Realities of Executive Pay

This book answers the question 'Are CEOs overpaid?' with a resounding 'No.' Defying dogma and business myths, it documents the realities of executive pay in the United States and the forces that have shaped pay in recent years. The authors, both expert consultants on the subject, investigate the extent to which pay is related to corporate performance and provide clear guidance for an approach that drives business success and shareholder value. Based on extensive research and decades of direct experience in working with thousands of companies, the book provides provocative insights for executives, analysts, government officials, and shareholders.


"Kay and Van Putten have aptly titled their new book. Unfortunately, the public in general has little understanding about executive compensation and in many cases the information in the public press is confusing and inaccurate. [This book] is a clear road map to the new realities. It is must reading for CEOs, HR executives and board members of public companies."
Former Senator Warren Rudman, chairman of the compensation committee, Boston Scientific Corp., former chairman of the compensation committee at Raytheon Company, and former member of the compensation committee at The Chubb Corp.

"In an environment in which U.S. CEOs and boards are heavily criticized for governance and executive pay practices, Kay and Van Putten present the other side of the story. Many of those practices in the United States encourage and lead to shareholder value creation and productivity increases rather than executive enrichment at the expense of shareholders and others."
Steven Kaplan, Neubauer family professor of entrepreneurship and finance, University of Chicago

"A very timely review of the key issues confronting corporations in devising and implementing executive compensation programs. The very experienced and highly regarded authors offer very well thought out, and some unique, solutions. This is must reading for compensation committee members and HR executives."
Martin Lipton, founding partner of Wachtell, Lipton, Rosen & Katz

"Written by one of the country's leading compensation consultants, this book is a significant addition to the debate on executive pay. Ira Kay's defense of current pay practices should be read by anyone seeking to assess whether these practices are well designed to serve the interests of investors."
Lucian Bebchuk, co-author of Pay without Performance: The Unfulfilled Promise of Executive Compensation