pop-economics, moral-hazard, perverse-incentivesAfter the Sarbanes-Oxley Act was passed in 2002 I remember reading that analysts were worried that few people would want to be executives because of the legal risk they now faced. Instead it looks as if the risk was just priced into their pay.
I would like to know if any research has been conducted into whether regulatory and social (through public distaste) risks cause fewer people to want these jobs or to demand greater payment for taking them? And, in the current environment of public outcry over high banker bonuses and pay packages, will the resentment lead to companies having to offer even higher salaries to attract talented people into taking the jobs?
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