Similar Search Results

Noise Hedging and Executive Compensation

Doherty, Neil A. - 2013

We address two apparent paradoxes of risk management: (1) managers hedge in order to avoid negative earnings surprises …, yet they tend to hedge risks uninformative of the value of the company; and (2) the presence of options in managers … informational asymmetry between insiders (managers) and outsiders (investors). Investors derive information about company value from …

Persistent link: https://www.econbiz.de/10013092522

The Degradation of Distorted Performance Measures

Sloof, Randolph; van Praag, Mirjam - 2008

Baker (2002) has demonstrated theoretically that the quality of performance measures used in compensation contracts hinges on two characteristics: noise and distortion. These criteria, though, will only be useful in practice as long as the noise and distortion of a performance measure can be...

Persistent link: https://www.econbiz.de/10010325988

Sorting Effects of Broad-Based Equity Compensation

Tsui, David - 2020

We examine the sorting role of broad-based equity pay using detailed employee-level data. We propose trust in management as an important and beneficial characteristic over which equity pay sorts employees, as such pay typically leaves employees with concentrated positions in employer stock and...

Persistent link: https://www.econbiz.de/10012851565

CEO turnover, firm performance and enterprise reform in China : evidence from new micro data

Kato, Takao (contributor); Long, Cheryl (contributor) - 2006

Using comprehensive financial and accounting data on China's listed firms from 1998 to 2002, augmented by unique data on CEO turnover, ownership structure and board characteristics, we estimate Logit models of CEO turnover. We find consistently for all performance measures including both stock...

Persistent link: https://www.econbiz.de/10003253453

Do Compensation Consultants Have Distinct Styles?

Cai, Chen - 2016

potential for client firms' managers to take actions in their self-interest or (ii) consultants face conflicts of interest …

Persistent link: https://www.econbiz.de/10013000181

Non-price and Price Performance Vesting Provisions and Executive Incentives

Core, John E. - 2017

This paper examines the consequences of the increased use of performance vesting provisions in long-term incentive compensation for CEOs and other executives in the post-2006 period following FAS 123R. We re-examine the agency prediction that incentives provided by accounting or other...

Persistent link: https://www.econbiz.de/10012972293

Do Stock Options Overcome Managerial Risk Aversion? Evidence from Exercises of Executive Stock Options

Heron, Randall A. - 2016

We report that the probability that executives exercise options early decreases with the volatility of the underlying stock return. We interpret this to mean that executives' subjective option value increases with volatility and that option grants increase executives' risk appetite. Further...

Persistent link: https://www.econbiz.de/10012986793

Learning about the Details in CEO Compensation

Hu, Shuting (Sophia) - 2018

I document the richness of CEO compensation packages and show that boards learn about the desirability of the many complex package features through observing how these features are associated with firm performance. I first capture the detailed features of plan-based awards for CEOs of the...

Persistent link: https://www.econbiz.de/10012932128

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

Politics and gender in the executive suite

Cohen, Alma; Hazan, Moshe; Weiss, David - 2020

We investigate the relationship of CEOs' political preferences (as reflected in their political contributions) with the prevalence and compensation of women in leadership positions at U.S. public companies. We find that CEOs who favor the Democratic Party (“Democratic CEOs”) are associated...

Persistent link: https://www.econbiz.de/10012200346