The study looked at how corporate governance affects CEO pay levels, and if using compensation consultants influences pay. They analyzed data from over 2,000 companies and found that CEO pay is higher in firms with weaker governance. Companies with weaker governance are more likely to use compensation 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, pay differences are not significant. This suggests that governance plays a big role in the higher pay of companies using compensation consultants. The study did not find evidence supporting claims that conflicted consultants offering non-compensation services lead to higher CEO pay.