Executive pay: Economic issues from the Commission's report
Gary Banks gave this speech to the Economics Society of Australia, Canberra Branch Annual Dinner on 14 October 2009.
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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?
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?