Pay without Performance: The Unffulfilled Promise of Executive Compensation

Harvard Business Review
John T. Landry
March 2005

Here's a book for anyone who thinks Sarbanes-Oxley will finally force American executive compensation in line with investors' interests. Bebchuk and Fried, both law professors, show that even independent directors inevitably end up serving CEOs. The solution, they insist, is to give shareholders the power to nominate their own slates of directors. Perhaps, but that won't happen until investors get fed up and start selling in droves, as the authors would probably concede.