CEO Compensation and Norms Entrepreneurs

The continuing increases in CEO pay despite a recessionary economy is spurring the work of norms entrepreneurs, most recently at Pfizer, as the NY Times notes. Beleaguered companies seem to be engaging with institutional shareholders and shareholder advocates in a way that is more typical in the UK to stave off attacks. The International Herald Tribune writes that Pfizer's board recently invited shareholder activists like TIAA-CREF to meet with them to discuss their concerns. This is just one small dent in the larger tussle between shareholders and boards, and the pressure is causing some to cave in. Jay recently blogged about one such instance here. Another is apparently the sea of change at Home Depot, which had suffered the indignity of being listed in the Corporate Library's list of shame during ex-CEO Nardelli's tenure. I have recently posted a piece on SSRN examining the work of norms entrepreneurs in the compensation area. This is the third in a series of articles examining the deployment of social norms by norms entrepreneurs to modify the behavior of CEOs and corporate directors. The other two are posted here and here.