John W. Barry

Join John W. Barry, Assistant Professor of Finance at Rice University and expert in corporate governance, as he dives into the nuances of executive compensation. He clarifies the concept of 'Say on Pay' and discusses its surprisingly high support despite being non-binding. Barry reveals that failed votes create costly consequences for boards, effectively disciplining compensation decisions. Fascinatingly, he highlights that Say on Pay can increase firm value by about 2% by reducing agency frictions. The conversation also explores the pitfalls of binding votes in governance.