Executive Compensation Consultants and CEO Pay

This Article surveys recent empirical studies on the relation between compensation consultants and CEO pay. The economic rationale for using executive compensation consultants is that they supply valuable data, information, and professional expertise to client firms. However, critics argue that the consultant’s independence might be compromised because of conflicts of interest arising from the cross selling of business services or because of the consultant’s desire to obtain repeat business. The emergent empirical evidence suggests that pay consultants are important in explaining executive compensation, although the findings are sometimes mixed and the precise effects of consultants on pay are yet to be fully understood. In addition, this Article provides some new evidence on the correlation between CEO pay and consultants using U.S. and U.K. data. Adopting a slightly different approach to prior studies, I show that there is a positive cross-section correlation between executive pay and compensation consultants. Conditional on the estimation strategy, the existing evidence supports the hypothesis that CEOs of U.K. firms using consultants receive higher pay than those that do not use compensation consultants. There is less evidence that firms facing conflicts of interest, such as supplying other business services, are associated with higher levels of CEO pay. However, the findings may be sensitive to the type of estimation methods employed, and addressing this concern is a challenge for future research. I also find little support for the hypothesis that firms switch consultants as a mechanism of increasing CEO pay. Again, interpreting the data is fraught with difficulties because of selection effects and the possibility of reverse causation. Finally, the recent Dodd-Frank Act significantly upgrades disclosure about executive compensation and compensation advisors. Future research on the efficacy of compensation consultants will undoubtedly take advantage of these new provisions. At present, it is difficult to unambiguously conclude that pay consultants simply promote executive interests at the expense of shareholders, or that pay outcomes and contracts are not optimal

Memorandum and articles relating to the role of union-avoidance consultants and modern management methods, 1979

West Coast Industrial Relations Association memo to consultants including articles: Hauser, Dedra. “The Union-Busting Hustle: Pinkertons with bats have been replaced by consultants with psychological weapons”. The New Republic, 25 August 1979; Warren, James; Kelly J. Brian. Law memo . Chicago Sun Times, 16 July 1979; AFL-CIO Attack, On Labor Consultants . Labor Relations Reporters, 16 April 1979

Sustainable economic growth within environmental limits. volume 1: guidance for the east midlands

LUC and GHK have developed a tool for setting environmental limits that local communities and other stakeholders can use. The three-step approach is based on the participation of the local community and other interested stakeholders, such as statutory agencies and businesses. It enables them to debate the use of important national, regional and local environmental assets, and the potential economic and social implications of setting environmental limits. The approach also provides a tool that can usefully support and inform other assessment requirements, such as Sustainability Appraisal/Strategic Environmental Assessment, Habitats Regulations Assessment and Equality Impact Assessment/Health Impact Assessment

A Consulting Giant; a Disgruntled Client: a ?Failed? Attempt to Change Management Controls in a Public Sector Organisation

There has been very little research into management consulting interventions in public sector organisations especially in emerging economies. This paper aims to fill this void by narrating the empirics of a consulting assignment carried out by a large international consulting firm in a Pakistani public sector organisation. The paper found that consultants? recommendations of modern day management accounting and control practices, such as a modern performance measurement system and a ?state-of-the-art? information system, were rejected by the management, who stopped the balance of payment of the consultants? fee. Employing a theoretical perspective that focuses on the structural conditions facing both the client and the consultants, and the strategies adopted by the consultants and the client, the paper aims to explain the empirics of the case. Through identification of the structural conditions operating in emerging economies, this paper sheds light on the nature of the relationship between consultants and client in these settings. The consultants? strategies and what went ?wrong? with these strategies was also analysed. Client management counter-strategies and management?s reasons for implementing them were also explored. Thus, through structural and strategic analysis, this paper aims to enhance our understanding of the dynamics of management consulting in public sector organisations especially in emerging economies

HELIN Library Consortium LORI Grant Statewide Digital Repository Project for Rhode Island -- Lyrasis Consulting Proposal

Proposal by Lyrasis Phase 1: The consultants will work with HELIN administration and members to gather background information on the project, and hold an initial “Smart Start” project planning meeting onsite in Rhode Island. Following the in-person meeting, the consultants will assist HELIN in development of focus group questions for project research, development of a survey tool, and additional development on stakeholder use case studies. Phase 2: The consultants will work with HELIN administration and members via phone, e-mail and other methods as needed to assist with repository platform selection. Phase 3: The consultants will prepare and deliver a report based on analysis of existing documentation, outcomes of the onsite visit, results of the focus group activity, and survey results. The report will take the form of an action plan, outlining activities needed to implement the Statewide Digital Repository Project for Rhode Island, and recommending potential projects and service providers to assist with next steps. Following the development of the report, the consultants will return to Rhode Island to make a presentation on the final report to HELIN administration and members

Sustainable economic growth within environmental limits hypothetical case study: 'limitville'

A new approach to delivering ‘sustainable economic growth within environmental limits’ has been developed for the East Midlands. The approach is described in detail in a guidance document prepared by Land Use Consultants and GHK Consulting for emda and partners. The ‘Limitville’ case study was developed to test and illustrate the new approach

Contractor project estimates vs. consultant project estimates in Ghana

Ten projects constructed in Ghana between 2003 and 2010 are examined and analysed to ascertain the reliability of estimated costs provided for the projects. Cost estimates for five of the projects were calculated by consultants and cost estimates for the five remaining projects were calculated by contractors. Cost estimates prepared by contractors seemed to be closer to actual costs than estimates calculated by consultants. Projects estimated by consultants experienced an average cost overrun of 40% and time overrun of 62% whereas projects priced by contractors experienced an average cost overrun of 6% and time overrun of 41%. It seemed that contractors had a better understanding of the actual construction processes and a clearer expectation of the needs of the client hence an ability to calculate estimates that were closer to reality. Construction clients in Ghana should rely on contractors for more realistic cost estimates as estimates by consultants may be inaccurate. Where consultants are employed, an allowance of up 40% should be added to the estimated costs as a margin for inaccuracy

Compensation Consultants and Executive Pay (CRI 2009-010)

This chapter provides a review of the recent literature on compensation consultants and executive pay. Six major pay consulting firms dominate the market. These firms advise client firms about executive pay and frequently supply other services such as actuarial work. There is some evidence that CEO pay is higher in firms that use compensation consultants. However, the hypothesis that CEO pay is higher in firms whose consultants face potential conflicts of interest, such as cross-selling of other services, is not as empirically robust

Water Demand Analysis within the Pursat River Catchment

MK16 Fostering Evidence-based IWRM in Stung Pursat Catchment (Tonle Sap Great Lake)In order to address water resources issues and develop capacities for implementing IWRM, there is a need for better collaboration between sectors and use of scientific data in decision making. Collaborative and informed decision-making rely on better understanding of, and access to quantitative and qualitative research results. Multi-stakeholder Platforms (MSPs) are forums to share and discuss such research outputs with various government sectors and water users. This report contributes to the Stung Pursat MSP process by providing information about changes in water balance in Pursat. The objectives of the Water Demand Analysis within the Pursat River Catchment report are to: Present and compare the water balance in the Pursat catchment under two scenarios; a) natural scenario (absence of Dam No. 1, No. 3, and No. 5) and b) dam scenario (presence of Dam 1, 3, and 5); and Apply and critique th

Target Markets for Grain and Cotton Marketing Consultants and Market Information Systems

This paper examines the use of market consultants and market information systems by grain and cotton producers. A model of producer demand for marketing information and consultants is proposed that decomposes price received into exogenous and endogenous components. The analysis is based on a survey of over 1,600 producers. The results suggest that expenditures on market information systems and market consultants are not independent and, more specifically, expenditures on marketing consultants substitute for expenditures on market information systems.expected utility, market information, marketing, risk, Tobit, Marketing,