When Less Is More: The Benefits of Limits on Executive Pay

Grants

Funding Acknowledgements

The authors thank Bob Gibbons for introducing us to each other. This collaboration was facilitated by a visiting professorship granted Hermalin by RMIT University, Melbourne. The authors also thank Catherine de Fontenay, Sven Feldmann, Marina Halac, Mike Weisbach, and seminar participants at Hitotsubashi University, Said Business School, and the University of Warwick for their valuable comments and suggestions. The financial support of the Australian Research Council Discovery Grant DP1094986 and the Thomas and Alison Schneider Distinguished Professorship in Finance are also gratefully acknowledged, as is the hospitality extended Hermalin by Nuffield College, University of Oxford. Send correspondence to Benjamin E. Hermalin, University of California, Department of Economics, 530 Evans Hall #3880, Berkeley, CA 94720-3880; telephone (510) 642-7575. E-mail: hermalin@berkeley.edu.