Posted by & filed under Accounting Theory, Executive Compensation.

Description: This past week we learned Barrick Gold executive chairman John Thornton earned just a little over $3 million for 2015. That doesn’t sound too bad, until you read that the year before Thornton was awarded almost $13 million, with almost $9.5 million coming from incentives. Barrick Gold drew the attention of three major pension funds last year over concerns about executive pay and governance issues.

Date: March 24, 2016



Discussion Points:

1) The issue of executive compensation has drawn a fair bit of attention in recent years. Have you been following any of the controversy?

2) What are some of the things accounting theory teaches about structuring executive compensation?

3) The article points out that though company performance improved, Thornton’s pay was cut. Does this one example tell us anything about the link between pay and performance?

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