We document that the likelihood of asset sales increases with union presence and union wages. Furthermore, acquiring firms gain significant concessions from the incumbent union following asset sales. Finally, the anticipation of union concessions helps explain the excess stock returns around...

We report that when states adopt a doctrine that reduces the risk that employees transfer to rival firms, affected firms respond by cutting option grants to both executives and rank-and-file (R&F) employees, especially if the firms have high R&D and nearby rivals. The reverse occurs if the...

We examine the effect of competitive shocks on executive compensation in the pharmaceutical sector. When a pharmaceutical firm receives a breakthrough therapy designation (BTD), its rivals respond by increasing option-based compensation for CEOs and other executives. The rivals also escalate...

Recently, a significant number of companies have come under public and regulatory scrutiny for backdating stock option grants. This article discusses factors that influenced the dramatic increase in stock option compensation and summarizes the academic research that led to the discovery of...