Executive-Level Bonuses are Returns on High-Risk Investments

By Jennifer Moreale
Since September 2008 executive bonuses have been criticized as excessive, unfair, and unnecessary. Case in point: Last week in a public speech President Obama referred to executive bonuses as being “obscene.” Are executive bonuses really a problem? Or just a way for politicians to gain public approval? Consider the traditional return on investment model: the...

TAGS: Augustin Landier, Barack Obama, Executive Compensation, NYU, Xavier Gabaix

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