Cost Of Talent: How Executives And Professionals Are Paid And How It Affects America [Hardcover]

Derek Bok (Author)

Book Description

The continuing uproar over top executive pay packages in American companies calls attention to an even larger and more important issue: in general, do we compensate highly educated people in the United States in ways that serve the best interests of the nation? Are some people paid too much and others too little? What effect do differences in earnings have on the career choices of the talented? Do we pay executives and professionals in ways that motivate them to work hard at the right things? In the most revealing study yet undertaken of compensation practices in the fields of business, law, medicine, higher education, teaching, and government, Derek Bok, renowned for his extensive writings on professional ethics, law, and labor relations, argues persuasively that the compensation paid to top executives, lawyers, and doctors cannot be justified, nor is there evidence that huge bonuses and other financial incentives motivate them to do better work. Moreover, Bok asserts, the lucrative rewards of Wall Street, the elite law firms, and the medical specialties act as a magnet to deprive poorly paid but vitally important teaching and public service professions of desperately needed talent. Bok argues that as our economy becomes more complex, the demand for able, highly educated people increases constantly and takes on greater and greater importance. Losing our most talented individuals to the lure of high compensation will affect the very nature of health care, the progress of the economy, the effectiveness of public policy, the pursuit of justice, and the quality of education in America. President Clinton's tax proposals to curb excessive executive pay now before Congress are only a firststep toward reform. Bok concludes that as we enter a new period of national development, we must rethink our deepest values, motivations, and priorities - reflected in our compensation practices - in order to better serve America's long-term interests.

Editorial Reviews

From Publishers Weekly

In this exploration of compensation practices in the workplace, Bok ( Labor Law ) ponders formidable philosophical queries. Do compensation systems help meet society's needs and prompt individuals to pursue the right goals? Bok, who spoke on this subject in a 1988 commencement address given when he was president of Harvard College, rigorously analyzes compensation theories, systems and the growth of professionalism. He is appalled by his findings: "The compensation of top executives is virtually independent of performance." This assessment is engaging, and comprises the intellectual axis of Bok's work; yet he offers no solution in the corporate sector. Fortunately, his examination of other professionals (doctors, lawyers, college professors, teachers and government officials) is more focused and includes suggestions to correct the imbalances affecting society and these groups.
Copyright 1993 Reed Business Information, Inc.

From Library Journal

Bok, the dean of Harvard Law School, presents a fascinating, well-researched, and timely study of compensation practices in six professional categories--business, law, medicine, higher education, government, and teaching. While top compensation in the private sector has been increasing rapidly, there have been few gains in the public sector--government, churches, and schools. Conclusive evidence is presented to demonstrate how this has shifted the distribution of talent away from the public sector. Further, Bok argues that the high compensation paid to top managers, doctors, and lawyers is not warranted; nor do incentive schemes motivate improved performance. He analyzes a number of alternatives to remedy the skewed distribution of talent toward ever-increasing earnings in law, business, and medicine and calls for changes in public policies as well as in our values. Highly recommended.
- Jane M. Kathman, Coll. of St. Benedict Lib., St. Joseph, Minn.
Copyright 1993 Reed Business Information, Inc.

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Product Details

• Hardcover: 342 pages
• Publisher: Free Press; 1St Edition edition (October 4, 1993)
• Language: English
• ISBN-10: 0029037557
• ISBN-13: 978-0029037553
• Product Dimensions: 9.6 x 6.3 x 1.3 inches
• Shipping Weight: 1.3 pounds
• Average Customer Review: 2.5 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #1,102,052 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

5 of 7 people found the following review helpful:

1.0 out of 5 stars A Real "Who Cares" Sort of Book, April 30, 2000

By A Customer

This review is from: Cost Of Talent: How Executives And Professionals Are Paid And How It Affects America (Hardcover)

While I bought this book some time ago, I just got around to reading it. A fan of Bok, you must wonder about why he wrote this book and why the publisher published it. Must have been "star struck". Talks about why lawyers make more than others and makes judgements about who is more valuable than who. Of course college professors and teachers come out on top--why not janitors and iron workers? I hauled this book around on several plane trips and was wishing I would lose it in the seat pocket.

This is a guy people would have listened to. He could have built an interesting and important model about executive pay and been instrumental in influencing how organizations value to top talent they have. The book needed a severe editing job. It shows that people you expect a lot from just don't come through consistently.

4 of 6 people found the following review helpful:

4.0 out of 5 stars A valuable and perceptive work, August 10, 1999

By A Customer

This review is from: Cost Of Talent: How Executives And Professionals Are Paid And How It Affects America (Hardcover)

This book delves into a very critical aspect of current American society; namely, the exorbitant salaries of America's executives and high-level professionals, and the growing disparity between them and the rest of the people, especially the most underprivileged members of society. Although the findings cited in the book might suffer from methodological shortcomings, they are justified and confirmed by any person's observations of modern America. For instance, many of our corporate executives and lawyers own $1,000 suits, $60,000 cars, and have kids in private schools (not to mention enjoy $100 lunches on a daily basis) while there are countless homeless and welfare ridden persons who have very little mobility, regardless of work-ethic. There are clearly unjust differences in the amount of wealth and resources available to the most privileged members of American society and the poorest ones (also becoming known as the "under class"). This book is a valuable resource for anyone concerned with crucial societal issues that face the US in the years to come.