. This paper develop a model suggesting that employee ownership policy reveals management quality. Good managers would use … employee ownership as a reward management tool whereas bad managers would implement it for entrenchment motives. We bring about … three main conclusions: (i) Bad managers use employee ownership as an entrenchment mechanism. (ii) This latter phenomenon …

model suggesting that employee ownership policy reveals management quality. Good managers would use employee ownership as a … reward management tool whereas bad managers would implement it for entrenchment motives. We bring about three main … conclusions: (i) Bad managers use employee ownership as an entrenchment mechanism. (ii) This latter phenomenon increases the cost …

Traditional stock option grant is the most common form of incentive pay in executive compensation. Applying a principal …

The average publicly-traded firm pays its CEO millions of dollars in deferred compensation and defined-benefit pension …-like incentive compensation, sometimes called “inside debt,” as a way of controlling risk-taking in systemically important financial … complex than other tools for managing risk, such as covenants or simply cutting back on option pay, and gives managers …

sue the CEO and CFO in an attempt to recover their incentive compensation based on misstated financial reports. While a … effects of the mandatory SOX clawback provision on the likelihood of financial misstatements and CEO compensation. We find a … arising from CEO in-the-money stock options. To examine the effects of the SOX clawback provision on CEO compensation, we …

This paper investigates the effects of the Sarbanes-Oxley Act (SOX) on CEO compensation, using panel data constructed … for the S&P 1500 firms on CEO compensation, financial returns, and reported accounting income. Empirically SOX (i) changes … the relationship between a firm's abnormal returns and CEO compensation, (ii) changes the underlying distribution of …

This paper examines whether the risk-taking incentives induced by performance-based vesting (p-v) compensation … compensation, as measured by the proportion of grant date fair value of p-v based compensation to total compensation, significantly … find that p-v based compensation increases loan maturity while reduces the covenant strictness as a trade-off. Next, we …

Motivated by the dual agency environment in founding family firms, we examine how family firms provide compensation … when family ownership is high and when family members serve as executives or board directors. Family-firm compensation … structure does not include tournament incentives when there are family heirs. The influence of family on compensation incentives …

compensation contracts when they become financially distressed. The link between compensation and equity-based measures of firm …-based compensation to be paid in cash rather than stock. These changes are economically most important for firms with the greatest need … bankruptcy. Overall, our findings are consistent with agency theory predicting that reduced incentives require contract …

We examine how incentive compensation for nonfamily executives in family firms differs from incentive compensation for …