Purpose – To evaluate various hedge programs designed to minimize the risk of an extreme monthly gas bill subject to a pre‐determined hedge program budget. Design/methodology/approach – Historical data were collected on natural gas spot and futures prices. Also, theoretical options prices...

Purpose – Many energy firms currently compensate their risk managers with bonuses based on their ability to outperform a budget benchmark. This creates the incentive for a manager to “let it ride” (LIR) when prices move adversely to the benchmark, thus exposing the firm to further adverse...

We examine the association between societal trust and the levels of CEO compensation and the proportion of equity-based compensation of 1,892 firm-years from 22 countries over the 2007-2013 period. We find both the levels of CEO compensation as well as the proportion of equity-based compensation...