ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Tuesday, May 23, 2006

A Nice Deal if You Can Get It

No one can accurately measure how much value a good CEO adds to a large public company.  No one knows how many people there are out there who have the skills and training to run large public companies.  No one can accurately tell, even after the fact, whether a particular CEO was good or bad, or merely lucky or unlucky.  When you couple this with the fact that the employment relationship is the ultimate relational contract, where the parties are not bargaining at arms' length, it's not surprising that you see people getting paid very large amounts of money.  Our colleage Richard Bales over at Workplace Prof Blog has an interesting post about a method companies are using to mask exactly how much money the CEO gets.

[Frank Snyder]

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