We find that a new compensation disclosure item on expected payouts from performance-based stock grants contains incremental information of a firm's future performance. Firms that disclose the most optimistic expected payment significantly outperform over the next two years, while the least...

Motivated by the SEC’s proposal for requiring disclosure on “actually paid” executive compensation, we use hand-collected actual payout data from CEOs’ accounting performance-based incentive plans to evaluate the usefulness of such disclosure. We find that actual payouts contain...

We find that contrary to popular belief, CEOs with long compensation duration do not make better long-term investment decisions. Using a comprehensive pay duration measure, we find that acquisitions conducted by CEOs with long compensation duration receive more negative announcement returns, and...