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In response to corporate governance concerns, SEC disclosure rules, and encouragement by Institutional Shareholder Services, most large U.S. public firms have adopted executive stock ownership requirements in recent years. Compared to CEOs already in compliance, CEOs who have not yet fulfilled...
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experience a greater reduction (increase) in CEO annual option grants and a substitution between CEO equity-based compensation … and cash-based compensation. Our findings highlight the important role of institutional investors in enhancing efficiency … in top executives' compensation contracting process …
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