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The Effect of the Sarbanes-Oxley Act on CEO Pay for Luck

Paligorova, Teodora - 2009

According to the rent-extraction hypothesis, weak corporate governance allows entrenched CEOs to capture the pay-setting process and benefit from events outside of their control - get paid for luck. In this paper, I find that the independence requirement imposed on boards of directors by the...

Persistent link: https://www.econbiz.de/10012720833

CEO bonus plans : and how to fix them

Murphy, Kevin James; Jensen, Michael C. - 2011

about organizational capabilities, take on excessive (or insufficient) risk, forgo profitable projects, and ignore the cost …

Persistent link: https://www.econbiz.de/10009316259

Peer group choice and chief executive officer compensation

Larcker, David F.; McClure, Charles; Zhu, Christina - 2019 - Draft: August 22, 2019

We examine the selection of peer groups that boards of directors use when setting CEO compensation. The challenge is to ascertain whether peer groups are selected to (i) attract and retain executive talent and/or (ii) enable rent extraction by inappropriately increasing compensation. We find...

Persistent link: https://www.econbiz.de/10012065171

The issue of remuneration of high-ranking managers in enterprises of the Czech Republic

Jančíková, Kateřina - In: Trends economics and management 12 (2018) 32, pp. 87-99

Persistent link: https://www.econbiz.de/10012022491

Accounting-based compensation and debt contracts

Li, Zhi; Wang, Lingling; Wruck, Karen H. - 2018 - CURRENT DRAFT: February 2, 2018

-debtholder conflicts, and reduced risk-taking incentives. Creditors view LTAPs as a substitute for monitoring, adjust covenant design based …'s credit rating improves and CDS spread declines after LTAP grants, suggesting that LTAPs help reduce firms' credit risk …

Persistent link: https://www.econbiz.de/10011963302

Relative performance evaluation and executive compensation : evidence from Chinese listed companies

Chen, Donghua; Liang, Shangkun; Zhu, Pin - In: China journal of accounting research : CJAR 5 (2012) 2, pp. 127-144

This paper focuses on the effect of relative performance evaluation (RPE) on top managers’ compensation in Chinese public firms. Overall, we find no evidence of an RPE effect or any asymmetry in firms’ use of RPE. The results obtained using Albuquerque’s (2009) method are similar to those...

Persistent link: https://www.econbiz.de/10011825215

Pro forma compensation : useful insight or window dressing?

Larcker, David F.; Tayan, Brian; Xiao, Youfei - 2015

In recent years, companies have begun to voluntarily disclose alternative measures of CEO compensation. These figures differ — sometimes significantly — from those reported in the summary compensation tables of the annual proxy. The motivation to report this information, however, is not...

Persistent link: https://www.econbiz.de/10011862295

CEO pay at valeant : does extreme compensation create extreme risk?

Larcker, David F.; Tayan, Brian - 2016

right balance has been struck between “pay for performance” and risk? • To what extent were the problems that occurred at …

Persistent link: https://www.econbiz.de/10011864729

Regulatory compensation limits and business performance : evidence from the National Football League

Petutschnig, Matthias - 2017

Executives' compensation has been on the forefront of the public and political debate since the recent financial crisis. One of the measures publicly discussed is a general upper boundary to top management compensation packages (“salary cap”, “maximum wage”). While such measures are...

Persistent link: https://www.econbiz.de/10011747365

Is Capping Executive Bonuses Useful?

Asai, Kentaro - 2017

This paper develops a theoretical framework to study the impact of bonus caps on banks' risk taking. In the model … market mobility, bonus caps simultaneously reduce risk shifting by bank executives (too much risk taking because of limited … of bonus caps critically depend on initial conditions, including the relative importance of risk shifting versus …

Persistent link: https://www.econbiz.de/10012950435