China will soon become the largest economy in the world, but many Westerners (myself included) know very little about it. Moreover, the vast majority
House of Commons Report on Corporate Governance
Today the House of Commons Select Committee on Business, Energy, and Industrial Strategy (BEIS) published its report on corporate governance, after
Simplicity, Transparency, and Sustainability: A New Model For CEO Pay
How did BP CEO Bob Dudley get paid £14m in 2015, despite the stock price falling by over 15%? Because of a complex, opaque pay scheme known as a
Blockchains: How they work, and how they may transform the world
(This post was originally featured in the Review of Finance Managing Editor's blog, which summarizes the lead article of each issue in a non-technical
The returns to investing in grass-roots sport and the distraction of Olympic medals
"Unless we look more creatively about how we engage everyone in physical activity, we may win medals but we will be bottom of the league table on
Why has CEO pay risen so much faster than worker pay?
Arguably the most convincing "smoking gun" evidence that CEO pay is excessive is how it's risen much faster than median worker pay. In the U.S., CEO
Long-Term Executive Incentives Improve Innovation and Corporate Responsibility
Executive compensation needs to be reformed. But, most of the calls for reform focus on the wrong dimensions. They focus on the level of pay, or the
Why the MSCI Study Does NOT Show That Equity Incentives Backfire
MSCI have released an impactful study entitled "Are CEOs Paid for Performance? Evaluating the Effectiveness of Equity Incentives", purporting to show
Translating the New USS Pension Rules Into Plain English
Andy Haldane, the Chief Economist of the Bank of England, said that pensions are so complex that even someone "moderately financially literate" like
How Virtually Every Pay Regulation Has Backfired
Few topics make the public as angry as CEO pay. In the UK, the average FTSE 100 CEO earned £5.4m in 2015, 148 times the median worker. For US S&P
Eight Common Myths About CEO Pay
Few business topics capture the public’s interest – and ire – as CEO pay. Indeed, a major reason why executives carried little weight in the Brexit
The Rational Response to Brexit
The Brexit vote was disappointing, for the reasons I wrote about in my earlier post. But, what's done can't be changed. What's the best way to respond