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The Ombudsman: Is the Evidence Sufficient to Take Action on Executive Pay? Reply to Commentators
Author(s) -
J. Scott Armstrong,
Philippe Jacquart
Publication year - 2013
Publication title -
informs journal on applied analytics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.662
H-Index - 64
eISSN - 1526-551X
pISSN - 0092-2102
DOI - 10.1287/inte.2013.0710
Subject(s) - action (physics) , shareholder , business , law and economics , executive compensation , accounting , actuarial science , economics , finance , corporate governance , physics , quantum mechanics
The experimental evidence in this collection of papers is sufficient for organizations to take action-at least with respect to investigating or testing alternative pay schemes. Some organizations have already implemented a number of these procedures. The failure of an organization's directors to follow evidence-based procedures for executive pay might be used as a basis for legal action by shareholders when results are detrimental to a firm.

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