We investigate the relationship between insolvency risk and executive compensation for BHCs over the 1992–2008 period. We employ CEO compensation sensitivity to risk (vega) and pay-share inequality between the CEO and other executives as measures of compensation and employ a system model to...

We investigate the relationship between insolvency risk and executive compensation for BHCs over the 1992-2008 period. We employ CEO compensation sensitivity to risk (vega) and pay-share inequality between the CEO and other executives as measures of compensation and employ a system model to...