Conference to Explore "Pay to Fail" Compensation for Financial-Industry Executives

April 1, 2012

On Monday, April 9, 2012, the College of Law will host a conference, Current Issues of Executive Compensation in the Financial Industry, where scholars from both finance and law fields will tackle issues in executive compensation contributing to the collapse of financial institutions and in assessing subsequent regulation to prevent its recurrence. The Conference will run from 8:30 a.m. - 4:30 p.m., in Room 237 (the Faculty Lounge).

“We hope to come to a better understanding of how executive compensation affected financial institutions’ corporate governance, operational decisions, and fundamental business strategies,” said Professor Simone Sepe, “in addition to looking forward, at how regulatory mechanisms can operate as structural “checks” or counterbalances.”

The series is free and open to members of the public. Those wishing to attend should contact Barbara Lopez at 520.626.1740 or to determine whether seats are available. A detailed agenda of the day’s events is available at

The conference will begin with introductory remarks from UA Law Dean Lawrence Ponoroff, law Professor Robert Mundheim, and Professor Rick Sias from the Eller College of Management. Sessions include paper presentations and discussions on the following topics:

  • Dodd-Frank Say on Pay: Will It Lead To A Greater Role for Shareholders in Corporate Governance?
    Prof. Randall Thomas, John S. Beasley II Professor of Law and Business, Vanderbilt Law School.
  • Trends in Bank Executive Compensation and Implications for Taxpayer Risk
    Prof. David Walker, Maurice Poch Faculty Research Scholar, Boston University School of Law.
  • Bank Risk Taking and Bank Middle Management Incentives
    Prof. Simone Sepe and Prof. Lubomir Litov, University of Arizona James E. Rogers College of Law and Eller College of Management.
  • Bank Executive Compensation and Capital Requirements Reform
    Prof. Sanjai Bhagat, Provost Professor of Finance, University of Colorado-Boulder.
  • Recent Innovations in Compensation and the Implications for Financial Institutions
    Prof. Jeffrey Coles, Francis J. and Mary B. Labriola Endowed Chair in Competitive Business Finance, W.P. Carey School of Business, Arizona State University.
  • When Executive Compensation Meets Reality
    John Cannon, Partner, Shearman & Sterling LLP.

Conference sessions will include time for questions and interactive discussion.