Executive Compensation Policies and Income Inequality

Presented by Dr. Dionne Pohler, Assistant Professor at the Johnson-Shoyama Graduate School of Public Policy Many explanations have been proposed for the sources of rising income inequality in North America. Some scholars suggest that much of it stems from earnings inequality due to disproportionate gains at the top; executive compensation systems that tie pay to performance, particularly through stock options, are susceptible to rent-seeking behavior. Contradicting this perspective, there is evidence to suggest that options have also been common during periods of lower executive compensation and inequality. In this study, we provide empirical data to support the idea that rising inequality within an organization correlates to changes in executive compensation policies after an initial public offering. More information: http://www.schoolofpublicpolicy.sk.ca/News_Events/calendar_details.php?id=513

More information at: http://www.uregina.ca/events/executive-compensation-policies-and-income-inequality