Executive Pay and Consultants

We have written on this Blog a number of times about the role of consultants in the executive compensation process, with their role often less than satisfactory.  Delaware law, in its emphasis on process, largely requires little more than some type of report from a consultant to justify any amount of executive compensation, irrespective of the nature or amount.  Yet consultants often end up serving as advocates for the CEO rather than the company.  

The student post below from Michelle Larson-Krieg examines some recent research in this area.  The key conclusion?  Compensation is higher in those companies employing the consultants.