Alex Edmans

Professor of Finance, London Business School

CEPR Research Fellow
ECGI Research Associate


UK Parliament’s Corporate Governance Inquiry / Green Paper

Response to government’s Green Paper on Corporate Governance

Written evidence on CEO pay, workers on boards, shareholder vs. stakeholder maximisation

Oral testimony in House of Commons, 15 November 2016 (transcript)

Supplementary written evidence: short-term trading, dividends and repurchases are not bad for society; further evidence on workers on boards


The Case For Brexit

The Case For Remain

The Rational Response to Brexit

Executive Compensation Reform

Compilation of non-technical, practitioner article on executive pay

Why We Need to Stop Obsessing Over CEO Pay Ratios (Harvard Business Review)

Link Executive Pay to Wider Societal Benefits (FT Op-Ed)

Stop Making CEO Pay A Political Issue (Harvard Business Review)

Performance-Based Pay For Executives Still Works (Harvard Business Review)

The Purposeful Company

Policy Report proposing reform to executive pay, blockholders, company law, accounting, the investment industry, and early-stage financing to embed purpose into companies. Brief summary

Executive Pay Report. Evidence-based proposals to reform executive pay. Brief summary

Latest Academic Papers

July 17: Equity Vesting and Investment published in the Review of Financial Studies. CEOs cut investment when their equity vests, due to concerns with the short-term stock price.

June 17: Major revision of Does Improved Information Improve Incentives? (formerly “The Value of Information for Contracting”). Optimal contracting model showing that improved precision of the performance measure may reduce the agent’s incentives, offsetting the benefits of information typically documented in the literature.

January 17: Major revision of Strategic News Releases in Equity Vesting Months. CEOs strategically time corporate news releases in months in which their equity vests. These releases boost the stock price and liquidity, which the CEO takes advantage of by cashing out shortly after.

December 16: Blockholders: A Survey of Theory and Evidence. Survey paper for the Handbook of the Economics of Corporate Governance on: underlying property rights of public firms and role of blockholders; definition of a blockholder; new evidence on frequency and characteristics of blockholders; simple model unifying theories of voice and exit; review of empirical studies; future research directions.

December 16Executive Compensation: A Modern Primer published in the Journal of Economic Literature. Survey paper of traditional and modern theories of executive compensation, bringing them together under a unifying framework that can be taught to PhD students. Emphasis on role of modeling assumptions, empirical predictions, and observed empirical findings.

October 16: The Source of Information in Prices and Investment-Price Sensitivity forthcoming in the Journal of Financial Economics. The value of financial markets to the real economy depends not on the total amount of information in prices, but where this information comes from.

December 15: Feedback Effects, Asymmetric Trading, and the Limits to Arbitrage published in the American Economic Review.

Latest Talks

December 15: Take Every Opportunity. 3-minute social experiment on the importance of boldness and being proactive.

April 15: The Social Responsibility of Business, TEDx talk

December 14Fulfilling Careers and Full Lives. Talk on career choice and personal leadership.

May 14: Wharton MBA Graduation Address. Talk on how to ensure the lessons learned during an MBA stay with you post-MBA.

Latest Policy Pieces

June 16: Stop Making CEO Pay a Political Issue (Harvard Business Review)

May 16: The Purposeful Company Project (published by the Big Innovation Centre and co-authored with Andy Haldane of the Bank of England, and others)

May 16: Why Organizations Cannot Thrive Without Purpose (Huffington Post)

March 16: 28 Years of Stock Market Data Shows a Link Between Employee Satisfaction and Firm Value (Harvard Business Review)

March 16: Should We Pay CEOs With Debt? (World Economic Forum)

February 16: Does Socially Responsible Investing Make Financial Sense? (Wall Street Journal)

February 16: Performance Pay for Executives Still Works (Harvard Business Review), a response to Stop Paying Executives for Performance

December 15: Do Financial Markets Matter for the Real Economy? (Huffington Post)

August 15: How Can We Help Businesses Think Long-Term? (World Economic Forum)

August 15: There Is No Tradeoff Between Profit and Purpose (Huffington Post)

February 15Why Companies Need to Think Long-Term (World Economic Forum)

January 15Does Corporate Social Responsibility Improve Firm Value? (World Economic Forum)

December 14Shareholder activism in action: reforming the corporate governance of a firm that pursued short-term gain at the expense of long-term value.

November 14How Should CEOs Be Paid? (World Economic Forum)

August 14The Secrets of Time Management (CityAM)

TEDx Talk, The Social Responsibility of Business

Take Every Opportunity: a 3-minute social experiment