Leeds Research Tackles Bloated Executive Bonuses

Finance Professor Sanjai Bhagat of the Leeds School of Business says restricting executive incentive bonuses will stop them from cashing in on stock options at the expense of their companies and shareholders. Executives shouldn't be allowed to sell their stock or stock options for two to four years after their last day in office, according to Bhagat's recent research. That way, executives share the same long-term interests as shareholders and will manage the company accordingly. His findings have been used by the Treasury Department and policymakers in devising ways to reform Wall Street.

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