Authors: Terence Tse; Mark Esposito; Khaled Soufani; Joseph C. Santora; Lucie Roux
Addresses: ESCP Europe, London Campus, 527 Fincheley Road, London, UK ' Grenoble Graduate School of Business, 12, Rue Semard, F-38000, Grenoble, France; University of Cambridge, CPSL, 1 Trumpington Street, Cambridge, CB2 1QA, UK ' Judge Business School, University of Cambridge, Trumpington Street, Cambridge, CB2 1AG, UK ' International School of Management, 148 rue de Grenelle, Paris, France ' Research Center for Energy Management-ESCP Europe, 527 Fincheley Road, London, UK
Abstract: During the financial crisis in 2008, executive compensation became focal to one of the key constituents of the systemic risk that led to the financial meltdown. This conceptual paper aims at providing ground for discussion on the viability of executive compensation within the larger stake of the financial institutions and whether its reform may be necessary. Developed over five possible propositions that empower the dialogue towards a resolute perspective and supported by five scholars who derive from diverse academic disciplines, this paper wants to provide a critical perspective on a sensitive and controversial topic.
Keywords: executive compensation; financial crisis; financial institutions; financial meltdown; inequality; systemic risk; bank executives; banking industry.
International Journal of Trade and Global Markets, 2014 Vol.7 No.1, pp.53 - 66
Received: 01 May 2012
Accepted: 22 Feb 2013
Published online: 29 Oct 2014 *