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Kelley School of Business Indiana University Bloomington
The Institute for Corporate Governance + Ethics

WEBINAR | Beyond ESG: Executive Pay Metrics and Shareholder Support

Posted on by ICGE

On February 5, 2025 the Institute for Corporate Governance + Ethics (ICGE) and Ethical Systems hosted a webinar with Mariassunta Giannetti of the Stockhold School of Economics titled “Beyond ESG: Executive Pay Metrics and Shareholder Support”

Compensation contracts feature a multitude of market, earnings, operating, and ESG metrics, Compensation metrics do not appear to have a large effect on actual payouts to executives and on the sensitivity of pay to market, earnings, and ESG performance, but rather aim to create consensus among shareholders on the proposed pay and the overall corporate strategy.

 

Mariassunta’s slides from the webinar can be found here and the video recording can be found below.

WEBINAR | The Blurring Lines Between Private and Public Ownership

Posted on by ICGE

On January 9, 2025 the Institute for Corporate Governance + Ethics (ICGE) and Ethical Systems hosted a webinar with Michelle Lowry of Drexel University titled “The Blurring Lines Between Private and Public Ownership”

High-growth startup companies are choosing to stay private longer. As they stay private longer, they begin to resemble public companies in multiple dimensions: ownership dispersion, sources of capital, corporate governance, and inorganic growth. In this talk, I will first provide evidence on each of these factors. I will then discuss what this potentially means for the ways in which we think about private versus public companies, including for example regulation and investment options for retail investors.

 

Michelle’s slides from the webinar can be found here and the video recording can be found below.

A New Chapter for The Institute for Corporate Governance

Posted on by ICGE

We are thrilled to announce the appointment of Todd Haugh as the new director of the Institute for Corporate Governance and Ethics (ICGE) at the Kelley School of Business. Haugh, a prominent scholar with profound expertise in business ethics, will lead the institute’s mission to foster ethical leadership and good governance practices in the corporate world.

Along with this leadership transition, we are excited to share that the ICGE has expanded its reach and influence by acquiring Ethical Systems, a renowned organization originally based at NYU Stern. Ethical Systems has been a leader in promoting ethical decision-making and advancing corporate responsibility. Through this acquisition, the ICGE will enhance its research, resources, and educational initiatives, positioning the institute to make an even greater impact in shaping the future of ethical business practices.

Haugh’s appointment and the acquisition of Ethical Systems signal a new chapter for the ICGE, one that builds on a legacy of integrity and leadership while positioning the institute as a key driver of ethical transformation in business. With Haugh at the helm, we look forward to a future of groundbreaking research, innovative programs, and meaningful collaboration aimed at improving the ethical foundations of business worldwide.

Stay tuned for more updates as the ICGE continues to expand its efforts and engage with leaders, scholars, and organizations committed to creating a more ethical business environment.

To see the announcement from the Kelley School of Business, click here.

“Incentives and Promotions”, featuring Kelly Shue

Posted on by ICGE

On May 2, 2024, presenter Kelly Shue discussed “Incentives and Promotions”. The lecture was moderated by Mila Sherman.

 

Kelly answers attendee questions in the above video and a few more below:

[1] Why do firm continue to earn significant profits if the Peter principle is so deterimental? Is the PP good for profits but bad for employees?

Promoting the best worker is not necessarily a mistake on the part of firms. While we show that promoting based on past performance has significant costs, there are also significant benefits in terms of motivating workers to exert effort and invest in firm specific human capital.

[2] Could it be that potential is assessed at a time when participants often have young children, which can lead to lower assessed potential especially for women who are usually more involved in child rearing at the time when their “potential” is assessed. If possible, it would be helpful to look at men and women without children to figure out if this effect is (partly) driving the results. Is this captured by your “demographics” controls? This would be consistent with recent studies of the gender pay gap which find no gender gap straight out of school (say law school) but a widening gap later on.

Please see our draft, which includes a careful breakdown of gaps by age. We think there definitely could be a child care component. However, we continue to see a large gap in assessments of potential and promotions even among older workers who are unlikely to be caring for young children, and for promotions that don’t require relocation or a large increase in responsibilities.

Publicly accessible versions of the research Kelly presented can be found here with detailed discussions and analysis of many of the topics raised in the Q&A.

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The Governance of Certification Agents, featuring Jess Cornaggia

Posted on by ICGE

On February 1, 2024, presenter Jess Cornaggia discussed “The Governance of Certification Agents”. The lecture was moderated by Christoph Schiller.

Jess’ slides from the lecture can be found here and the Q&A can be found below.

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