August 11, 2012
Professor Michael Malloy delivered a paper, "Governing Foolishness: A Comparative Analysis of Executive Compensation Rules," on July 16, at the Ninth Annual International Conference on Law in Athens, Greece.
In his address, Malloy explored three approaches to limits on executive compensation as responses to the current financial crisis at the Athens Institute for Education and Research forum. He examined the executive compensation provision of the Dodd-Frank Act, the European Commission's Green Paper on executive compensation, and guidelines issued by the Basel Committee on Banking Supervision based at the Bank for International Settlements.
"My analysis, which relies on current empirical data on executive compensation, strongly suggests that limitations on executive compensation are of negligible effect," said Malloy. "I argued that those limits were a distraction from the real issues in financial services markets, such as fraud, manipulation, and gross negligence during the run-up to the crisis. As you can imagine, an animated discussion ensued."
Malloy has been appointed to organize and lead a special conference next summer on Law and Literature, jointly sponsored by the institute's Law Research Unit and its Literature Research Unit. This will be the first conference of its kind for the Athens-based organization.
An internationally recognized expert on bank regulation and on economic sanctions, the McGeorge Distinguished Professor and Scholar will teach his popular Law and Literature elective this fall along with Banking Law and Securities Regulation.