The Cost of Talent: How Executives And Professionals Are Paid And How It Affects America

by Derek Bok

Known for his extensive writings on professional ethics, law, and labor relations, Derek Bok returns with a persuasive claim that the compensation being paid to top executives, lawyers, and doctors cannot be justified in the most revealing study done yet regarding the compensation practices in various professional fields.

As the American economy becomes more complex, the demand for able, highly educated people increases constantly with a steady growth of importance. But when considering the leverage of high pay and extravagant benefits, it is possible that talented individuals will be lost to the appeal of exaggerated compensation, putting the work that they are completing in danger.

Bok argues that compensation paid to top executives, lawyers, doctors, and economists does not offer a significant benefit, nor is there evidence that large bonuses and other financial incentives produce better work. Additionally, he presents the concept that the lucrative rewards of Wall Street, elite law firms, and medical specialties deprive poorly paid but vital teaching and public service professions of desperately needed talent.

The Cost of Talent asserts that America must enter a new period of national development by rethinking the values, motivations, and priorities that are reflected in our compensation practices in order to better serve the nation’s long-term interests.

360 pages, Paperback

First published January 1, 1993

About the author

Derek Curtis Bok (born March 22, 1930) is an American lawyer and educator, and the former president of Harvard University.

Bok was born in Bryn Mawr, Pennsylvania, and graduated from Stanford University (B.A., 1951), Harvard Law School (J.D., 1954), and George Washington University (A.M., 1958). He taught law at Harvard from 1958, where he served as dean of the law school (1968–1971) and then as university president (1971–1991). Bok currently serves as the Faculty Chair at the Hauser Center for Nonprofit Organizations at Harvard and continues to teach at the Harvard Graduate School of Education and the Harvard Kennedy School.

After 15 years away from the Harvard presidency, Bok returned to lead the university on an interim basis after Lawrence Summers's resignation took effect on July 1, 2006. He was succeeded by Drew Gilpin Faust on July 1, 2007.

Bok's wife, the sociologist and philosopher Sissela Bok, née Myrdal (daughter of the Swedish economist Gunnar Myrdal and the politician and diplomat Alva Myrdal, both Nobel laureates), is also affiliated with Harvard, where she received her doctorate in 1970. His daughter, Hilary Bok, is a philosophy professor at Johns Hopkins University.