The study looked at how corporate governance affects CEO pay levels, especially in firms using compensation consultants. They found that CEO pay is higher in companies with weaker governance, and those with weaker governance are more likely to use consultants. Even after considering economic factors, CEO pay is still higher in firms using consultants. However, when comparing companies with similar economic and governance characteristics, the pay differences are not significant, showing that governance plays a big role in higher pay for consultant clients. The study also found no evidence that conflicted consultants offering non-compensation services lead to higher CEO pay.