CEOs inflate each other's pay

http://www.eurekalert.org/pub_releases/2015-04/uotr-ysh040915.php

Public Release: 9-Apr-2015
You scratch his back, he scratches mine and I'll scratch yours
How unethical behavior can inflate executives' pay
University of Toronto, Rotman School of Management

If you have a strong network of business colleagues who sit on each other's board, your pay can be a lot heftier --- but often at the expense of your shareholders, according to a new study by Ted Rogers School of Management at Ryerson University and University of Toronto's Rotman School of Management.

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While Song says it's difficult for shareholders to see the circle of reciprocity among CEOs, "as a start, giving shareholders more powers to monitor board meetings would help."