There is little progress in monitoring executive salaries

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There is much debate about the remuneration of executives in American companies, especially after the corporate scandals, which led to profound legislative changes in the United States, mainly with the enactment of the Sarbanes-Oxley Act. Within this context, executive remuneration became the subject of heated debates in North American academia, as it is identified as one of the main elements that motivated the creation of the aforementioned fraudulent schemes. In the USA, concern with the issue of alignment of interests between executives and shareholders gave rise to the so-called Agency Theory. This is the issue of separation between capital and control.

As in the USA the so-called institutionalized company predominates, the one whose control no longer belonged to the owner of the capital. Therefore, the big challenge is to avoid the so-called Phone Number List private benefit of control, that is, the extraction of economic advantages by executives to the detriment of the company's interests. The pre-corporate scandals environment was one of great euphoria, due to the performance of technology companies, associated with a distorted interpretation of the so-called Theory of the Firm. In general terms, it states that a company's efficiency is achieved by eliminating transaction costs. In other words, the aforementioned theory was applied to publicly-held companies, using the maximization of the value of the company's shares as a parameter to measure the reduction of transaction costs.



Under the pretext of maximizing the value of shares, many executives combined the useful with the pleasant, that is, adopting a short-term strategy to increase the value of the company's shares, guaranteeing excellent rewards when exercising their share options and receiving performance bonuses. . In this sense, Bebchuck and Fried (Pay Without Performance, Havard Press, ) presented a study regarding the increase in executive remuneration in the largest American companies in the period from to The concern of the aforementioned scholars was to verify whether or not the large increase in executive remuneration in the period studied accompanied the growth in the companies' market value.