How is the rate of pay for CEOs determined? That is the complex and multimillion-dollar question—and one that WMU Assistant Professor of Finance Dr. Edward Kim researches.

“Corporations invest significant resources in structuring CEO compensation to ensure executives act in ways that maximize shareholder value,” says Kim. “A well-designed compensation package can incentivize performance and long-term value creation. While CEO pay is formally determined by the board of directors, it results from nuanced negotiations between the executive and the board. Whether CEOs ultimately set their own pay or if competitive market forces drive compensation levels remains an open question in research.” READ MORE