Markets Magazine
Big Pay Packages Are a Powerful Weapon for Activist Investors
Shareholder votes have focused attention on the link between compensation and company performance. Here's how hedge funds use executive pay as a lever.
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Attacking CEOs! Shining a light on boards’ shortcomings as independent overseers! Girding for proxy battles!
To do those kinds of things, activists often focus on executive compensation. Pay has become even more important in the years since the financial crisis, which underscored how poorly thought-out incentive structures can motivate bad behavior.