Events

If You're So Ethical Why Are You So Highly Paid? Market Failure in Executive Pay

Hosted by LSE Press

Online and in-person public event (Sheikh Zayed Theatre, New Academic Building)

Speakers

Dr Eva Micheler

Professor Sandy Pepper

Professor Alex Voorhoeve

This event is relevant for anyone concerned to understand and tackle business’s role in the growing social inequality of advanced economies in an informed, fair and feasible way.

Over the last 30 years senior executive pay in the USA, UK and many other developed countries has increased dramatically, generating enormous debate and, at times, public and political outrage. Sandy Pepper’s book argues that this ‘soaraway’ inflation in executive pay is the result of a market failure that has lead remuneration committees to become trapped in a prisoner’s dilemma – where they feel they must recommend over-the-odds payments in the vain hope of obtaining or retaining superior talent. For institutional investors too, these developments have created a collective action problem, with many historically unwilling or unable to intervene to curtail excessive corporate executive pay. Combatting this ‘market failure’ approach to executive pay ultimately requires a stronger, reformed ethical response from investors, companies, and executives – but what solutions are feasible? 

Meet our speakers and chair

Eva Micheler (@EMicheler) studied law at the University of Vienna and at the University of Oxford before joining LSE Law School in 2001. She is an Associate Professor in Law at the London School of Economics and Political Science and an ausserordentlicher Universitätsprofessor at the University of Economics in Vienna, where she took Habilitation in 2003. Professor Micheler is also on the management committee of the Systemic Risk Centre at LSE.

Alexander (‘Sandy’) Pepper is Emeritus Professor of Management Practice at LSE, where he has been teaching and researching since 2008. Prior to this he had a long career at PricewaterhouseCoopers. Sandy is one of the UK’s recognised experts on executive pay. He is the author of several academic articles and books on the subject, including Senior Executive Reward – Key Models and PracticesThe Economic Psychology of Incentives, and Agency Theory & Executive Pay.

Alex Voorhoeve is Professor in the Department of Philosophy, Logic and Scientific Method at the London School of Economics and Political Science. He has held visiting positions at Harvard (2008-09), Princeton (2012-13) and the National Institutes of Health, U.S. (2016-17). His research covers decision theory, moral psychology, and the theory and practice of fair distribution, with particular application to the allocation of resources for health.

More about this event

This event forms part of LSE’s Understanding the UK Economy series, showcasing research and expertise on the state of the UK economy and its future.

LSE Press (@LSEPress) is the LSE’s book and journal publishing arm.

Twitter Hashtag for this event: #LSEUKEconomy

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How can I attend? Add to calendar
This public event is free and open to all. This event will be a hybrid event, with an in-person audience and an online audience. 

For the online event: Registration for this event on Zoom will open after 10am on Monday 31 October.

For the in-person event: No ticket or pre-registration is required. Entry is on a first come, first served basis. For any queries see LSE Events FAQ.

For any queries email events@lse.ac.uk.

This event will be streamed live on YouTube.

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