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Columbia Business School’s Professor Daniel Wolfenzon and Visiting Professor Francisco Pérez-González were featured in The Economist discussing Elon Musk’s proposed $1 trillion pay package and what it reveals about the “superstar CEO” dilemma facing modern corporations. Drawing on their research, they explained that while firms increasingly rely on high-profile leaders to drive innovation and investor enthusiasm, such extreme compensation structures can create governance risks, distort incentives, and concentrate too much power in a single executive. Their work highlights how boards can better balance attracting top talent with maintaining accountability and long-term firm value.
