Description
Book SynopsisProdded by economists in the 1970s, corporate directors began adding stock options and bonuses to the already-generous salaries of CEOs with hopes of boosting their companies' fortunes. Guided by largely unproven assumptions, this trend continues today. This book explores the consequences of this development.
Trade Review"A carefully stated cri de guerre against 'the current cult of leadership' that characterizes corporate culture-and leads to extraordinary paychecks... A provocative thesis couched in measured, scholarly language. Watch the editorial pages of Bloomberg News and the Wall Street Journal to see whether it catches on." Kirkus "Every director needs to read Dorff's new book. It's time to give pay for performance a new look." -- Stephen Bainbridge Agenda "'Indispensable and Other Myths' is an all-guns-blazing attack on the way that Anglo-Saxon companies pay their bosses." The Economist "Dorff argues convincingly, from the evidence available, that the behavioural theory developed in capitalism that performance-related pay is a significant motivator for employees does not hold up to scrutiny... This is a must-read for human resources professionals and others willing to give serious thought to CEO and top management pay, and what those people realistically can and do deliver." -- Cary Cooper Times Higher Education "Dorff makes a persuasive case that performance pay is overrated." -- Jonathan Low The Lowdown
Table of ContentsACKNOWLEDGMENTS 1. INTRODUCTION PART I. WHAT'S WRONG WITH THE DOMINANT THEORIES? 2. THE PUZZLES OF CEO COMPENSATION 3. The Corporate Personality Myth 4. MARKET MYTHOLOGY 5. Incentives Mythology PART II. WHAT'S REALLY GOING ON? 6. Performance Pay Mythology 7. Causation Mythology 8. Predictability Mythology PART III. HOW CAN WE BEST REFORM THE SYSTEM? 9. ALIGNMENT MYTHOLOGY 10. MOVING FORWARD Notes Index
