Description: Who tends to determine what a CEO should be paid? The compensation committee. Who tends to sit on the compensation committee? CEOs from other companies, of course.

Source: FinancialPost.com

Date: April 28, 2015

Link: http://business.financialpost.com/executive/leadership/you-scratch-his-back-hell-scratch-mine-and-ill-scratch-yours-why-ceos-give-each-other-raises

Questions for Discussions:

• What is “anticipated reciprocity?
• Explain the experiments and the results derived.
• How can the system be made fairer?