- executive compensation •
- disclosure evasion •
- family executives •
- executive-to-worker pay ratio
This study documents the danger of limiting the coverage of mandatory pay disclosure. Exploiting the 2013 rule change in Korea, we find that its restrictive coverage, confined to board members with total annual pay exceeding 500 million Korean won, led a large fraction of executives to evade disclosure through deregistration (i.e., stepping down from the board) or pay-cuts.