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Executive pay: economic issues from the Commission's report

Chairman's speech

Gary Banks gave this speech to the Economics Society of Australia, Canberra Branch Annual Dinner on 14 October 2009.

See also



The public company is the solution, not the problem

But every benefit has a cost: the principal-agent 'problem'

When is high pay a policy problem?
High pay can create wealth
High pay can also transfer wealth or even destroy it
Whose problem is it anyway?

Big pay is a big company story

Dominant influences on pay quantum: efficient or inefficient markets?
Increased company size, globalisation and competition for top talent
Lake Wobegon effects?
Incentive pay
What you see is not what you get - measurement issues
Performance pay means more pay
More incentive pay for bigger firms?

Has incentive pay worked?

What role for government?