The Value and Consequences of Giving Shareholders a ‘Say on Pay’

Publication Date


Grant Type

Policy research grant


This project will evaluate to what extent “Say on Pay” provisions (shareholders’ right to a nonbinding advisory vote on a company's executive compensation) plan can affect the level of executive compensation, overall employee compensation, and firm performance. These provisions have been introduced by the Dodd Frank 2010 act as compulsory for all firms but to date there is no evidence on their capacity to affect the level or structure of executive compensation. The author proposes to study similar proposals voted on in firms since 2007 to evaluate their effect. The empirical framework will provide a causal estimate of their effect.