Download or read book Executive Compensation Best Practices written by Frederick D. Lipman and published by John Wiley & Sons. This book was released on 2008-06-27 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: Executive Compensation Best Practices demystifies the topic of executive compensation, with a hands-on guide providing comprehensive compensation guidance for all members of the board. Essential reading for board members, CEOs, and senior human resources leaders from companies of every size, this book is the most authoritative reference on executive compensation.
Download or read book CEO Compensation and Private Information written by Roman Inderst and published by . This book was released on 2008 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: We consider the joint optimal design of CEOs severance pay and on-the-job pay in a modelin which the CEO has interim private information about the likely success of his strategy. The board faces a tradeoff between reducing the likelihood that the firm forgoes an efficient strategy change and limiting the CEO s informational rents. The optimal truthtelling mech-anism takes a simple form: it consists of fixed severance pay and high-powered, non-linear on-the-job pay, such as a bonus scheme or option grant. Our model makes testable predic-tions linking CEOs severance pay and on-the-job pay to each other as well as to the firm s external business environment, firm size, and corporate governance.
Download or read book How justifiable is high CEO pay in the United States written by Christoph Kotsch and published by diplom.de. This book was released on 2016-11-17 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: The high compensation for executives and in particular for CEOs has been a topic of debate for many years. Increasing salaries and bonuses for leaders of companies have mostly been criticized and even pointed out as a key factor for a rising wealth distribution inequality. Especially in the United States, where CEO pay is most extreme, the public as well as the media ask for new regulations and political intervention. But are these high compensations really undeserved and unfair? How much do top managers actually earn and why do businesses support it? This academic paper will first give an overview of some important numbers and statistics in order to have an idea of how high a CEO’s income is compared to an average employee. It will also explain how to properly interpret these data and how much an executive’s income can vary depending on different factors. After analyzing the recent history and developments in CEO pay, chapter 8 will provide the necessary economic background to help understand companies’ decisions and see high wages from a business point of view. Although the paper will focus on CEO earnings in the US, it will give examples of differences in other countries and systems. Due to a distinct set of labor regulations, we will draw a comparison to CEO pay in Germany and furthermore illustrate the event of a political referendum in Switzerland. Finally, we will pick on various arguments by media, the public, as well as renowned economists, listing a series of pros and cons for excessive CEO pay. An insightful survey, conducted in the US, will then close the debate and leave the reader with the final thoughts of the conclusion.
Download or read book Pay Without Performance written by Lucian A. Bebchuk and published by Harvard University Press. This book was released on 2004 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: The company is under-performing, its share price is trailing, and the CEO gets...a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers' influence over their own pay--and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders. Lucian Bebchuk and Jesse Fried demonstrate that corporate boards have persistently failed to negotiate at arm's length with the executives they are meant to oversee. They give a richly detailed account of how pay practices--from option plans to retirement benefits--have decoupled compensation from performance and have camouflaged both the amount and performance-insensitivity of pay. Executives' unwonted influence over their compensation has hurt shareholders by increasing pay levels and, even more importantly, by leading to practices that dilute and distort managers' incentives. This book identifies basic problems with our current reliance on boards as guardians of shareholder interests. And the solution, the authors argue, is not merely to make these boards more independent of executives as recent reforms attempt to do. Rather, boards should also be made more dependent on shareholders by eliminating the arrangements that entrench directors and insulate them from their shareholders. A powerful critique of executive compensation and corporate governance, Pay without Performance points the way to restoring corporate integrity and improving corporate performance.
Download or read book A Study of Executive Pay in Private Non profit Sector written by Michael Byungnam Lee and published by . This book was released on 1988 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Handbook of the Economics of Corporate Governance written by Benjamin Hermalin and published by Elsevier. This book was released on 2017-09-18 with total page 762 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Handbook of the Economics of Corporate Governance, Volume One, covers all issues important to economists. It is organized around fundamental principles, whereas multidisciplinary books on corporate governance often concentrate on specific topics. Specific topics include Relevant Theory and Methods, Organizational Economic Models as They Pertain to Governance, Managerial Career Concerns, Assessment & Monitoring, and Signal Jamming, The Institutions and Practice of Governance, The Law and Economics of Governance, Takeovers, Buyouts, and the Market for Control, Executive Compensation, Dominant Shareholders, and more. Providing excellent overviews and summaries of extant research, this book presents advanced students in graduate programs with details and perspectives that other books overlook. Concentrates on underlying principles that change little, even as the empirical literature moves on Helps readers see corporate governance systems as interrelated or even intertwined external (country-level) and internal (firm-level) forces Reviews the methodological tools of the field (theory and empirical), the most relevant models, and the field’s substantive findings, all of which help point the way forward
Download or read book The CEO Pay Machine written by Steven Clifford and published by Penguin. This book was released on 2017 with total page 289 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The pay gap between chief executive officers of major U.S. firms and their workers is higher than ever before--depending on the method of calculation, CEOs get paid between 300 and 700 times more than the average worker. Such outsized pay is a relatively recent phenomenon, but ... few detractors truly understand the numerous factors that have contributed to the dizzying upward spiral in CEO compensation. Steven Clifford, a former CEO who has also served on many corporate boards, has a name for these procedures and practices: 'The CEO Pay Machine.' [This book] is Clifford's ... explanation of the 'machine'--how it works, how its parts interact, and how every step pushes CEO pay to higher levels"--
Download or read book Urban Agglomeration and CEO Compensation written by Kose John and published by . This book was released on 2017 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: An underlying assumption in the executive compensation literature is that there is a national labor market for CEOs. The urban economics literature, however, documents higher ability among workers in large metropolitans, which results in a real and stable urban wage premium. In this paper, we investigate the link between the spatial clustering of firms in big, central cities (i.e., urban agglomeration) and the level and structure of CEO compensation. Using CEO compensation data for the period 1992-2004, we document a positive relation between the size and centrality of the city in which the firm is headquartered and the total, as well as the equity based portion of CEO pay. Our results are robust to a host of control variables, sensitivity and endogeneity tests, indicating that urban agglomeration may reflect positive externalities, such as knowledge spillovers, business connections and improved access to private information that have a positive effect on CEO pay and incentive driven compensation for good performance. We document gradual human capital gains acquired from big city work experience that are transferable to the rural area, and rewarded for, once the CEO relocates into a smaller, less central community. Our tests provide novel evidence of information spillovers and networking opportunities in big cities that can directly affect how CEOs are compensated. Such sources of information and influence represent something for which firms are willing to pay higher and more incentive driven pay, evidence in favor of a market-based explanation for CEO compensation. Key words: Agglomeration, CEO, Compensation, Incentive, Geography. JEL Code: D8, G3, J3, R1.
Download or read book Executive Compensation and Business Policy Choices at U S Commercial Banks written by Robert DeYoung and published by DIANE Publishing. This book was released on 2010-08 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines whether and how the terms of CEO compensation contracts at large commercial banks between 1994 and 2006 influenced, or were influenced by, the risky business policy decisions made by these firms. The authors find strong evidence that bank CEOs responded to contractual risk-taking incentives by taking more risk; bank boards altered CEO compensation to encourage executives to exploit new growth opportunities; and bank boards set CEO incentives in a manner designed to moderate excessive risk-taking. These relationships are strongest during the second half of the author¿s sample, after deregulation and technological change had expanded banks' capacities for risk-taking. Charts and tables.
Download or read book Indispensable and Other Myths written by Michael Dorff and published by Univ of California Press. This book was released on 2014-08-01 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prodded by economists in the 1970s, corporate directors began adding stock options and bonuses to the already-generous salaries of CEOs with hopes of boosting their companiesÕ fortunes. Guided by largely unproven assumptions, this trend continues today. So what are companies getting in return for all the extra money? Not much, according to the empirical data. In Indispensable and Other Myths: Why the CEO Pay Experiment Failed and How to Fix It, Michael Dorff explores the consequences of this development. He shows how performance pay has not demonstrably improved corporate performance and offers studies showing that performance pay cannot improve performance on the kind of tasks companies ask of their CEOs. Moreover, CEOs of large established companies do not typically have much impact on their companiesÕ results. In this eye-opening exposŽ, Dorff argues that companies should give up on the decades-long experiment to mold compensation into a corporate governance tool and maps out a rationale for returning to the era of guaranteed salaries.
Download or read book An Introduction to Executive Compensation written by Steven Balsam and published by Academic Press. This book was released on 2002 with total page 410 pages. Available in PDF, EPUB and Kindle. Book excerpt: General readers have no idea why people should care about what executives are paid and why they are paid the way they are. That's the reason that The Wall Street Journal, Fortune, Forbes, and other popular and practitioner publications have regular coverage on them. This book not only proposes a reason - executives need incentives in order to maximize firm value (economists call this agency theory) - it also describes the nature and design of executive compensation practices. Those incentives can take the form of benefits (salary, stock options), or prerquisites (reflecting the status of the executive within the organizational culture.
Download or read book Executive Compensation for Private Company Ceos and Business Owners written by Larry Comp and published by Rock Star Publishing House. This book was released on 2014-03-10 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: Finally a "quick read" for private company CEOs and business owners that takes the mystique out of Executive Compensation and helps them to get control of and leverage their most important investment. Loaded with tools, tips and guidelines related to critical topics, such as incentive plan design, use of long-term equity/cash compensation, and capital accumulation for business owners and their key executives. LARRY COMP, President of LTC Performance Strategies, Inc. has led hundreds of performance-based compensation initiatives with over 300 companies across industry. His passion is leveraging compensation to drive organizational and individual performance. STEVE SMITH, Director of Client Solutions for LTC Performance Strategies, Inc. has consulted on over 100 complex total compensation initiatives. His passion is optimizing compensation to help clients to attract & retain top talent, while realizing astrong return (ROI) on their largest investment.
Download or read book Top Dollar written by Dee Mahan and published by . This book was released on 1999 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Joan Garry s Guide to Nonprofit Leadership written by Joan Garry and published by John Wiley & Sons. This book was released on 2017-03-06 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: Nonprofit leadership is messy Nonprofits leaders are optimistic by nature. They believe with time, energy, smarts, strategy and sheer will, they can change the world. But as staff or board leader, you know nonprofits present unique challenges. Too many cooks, not enough money, an abundance of passion. It’s enough to make you feel overwhelmed and alone. The people you help need you to be successful. But there are so many obstacles: a micromanaging board that doesn’t understand its true role; insufficient fundraising and donors who make unreasonable demands; unclear and inconsistent messaging and marketing; a leader who’s a star in her sector but a difficult boss… And yet, many nonprofits do thrive. Joan Garry’s Guide to Nonprofit Leadership will show you how to do just that. Funny, honest, intensely actionable, and based on her decades of experience, this is the book Joan Garry wishes she had when she led GLAAD out of a financial crisis in 1997. Joan will teach you how to: Build a powerhouse board Create an impressive and sustainable fundraising program Become seen as a ‘workplace of choice’ Be a compelling public face of your nonprofit This book will renew your passion for your mission and organization, and help you make a bigger difference in the world.
Download or read book CEO Compensation and Firm Performance in Japan written by Takao Kato and published by . This book was released on 2003 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Myths and Realities of Executive Pay written by Ira Kay and published by Cambridge University Press. This book was released on 2007-08-27 with total page 278 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book answers the question 'Are CEOs overpaid?' with a resounding 'No.' Defying dogma and business myths, it documents the realities of executive pay in the United States and the forces that have shaped pay in recent years. The authors, both expert consultants on the subject, investigate the extent to which pay is related to corporate performance and provide clear guidance for an approach that drives business success and shareholder value. Based on extensive research and decades of direct experience in working with thousands of companies, the book provides provocative insights for executives, analysts, government officials, and shareholders.
Download or read book Executive Compensation and Related party Disclosure written by James Hamilton and published by CCH Incorporated. This book was released on 2006 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: As of July 26, 2006, the SEC completed the most sweeping overhaul of executive compensation and related party transaction disclosure in fourteen years. Executive Compensation and Related-Party Disclosure: SEC Rules and Explanations provides timely and thorough explanations, implications and full text of these reforms. The revision puts in place a principles-based disclosure regime designed to give investors the information they need on executive compensation to make informed investment decisions and demystify any financial dealings between executives and their companies. The new rules also enhance and consolidate into one item director independence and related corporate governance disclosure requirements. The heart of the reforms is the new Summary Compensation Table and the new Compensation Discussion and Analysis. The Summary Compensation Table is the principal vehicle for executive compensation, showing the total compensation for each of the named executive officers. For the first time, SEC rules require that all elements of executive compensation must be disclosed and that a total individual compensation number be provided for the five named executive officers. Other tables will display post-retirement compensation and options exercises. The new Compensation Discussion and Analysis (CD&A) section is a narrative principles-based overview explaining material elements of the company's compensation for named executive officers. It provides a company with both an obligation and an opportunity to explain its compensation policies, focusing on the most important factors. It will be filed and thus subject to Sarbanes-Oxley certification. The SEC also mandated a new compensation committee report requiring the committee to state if it has reviewed and discussed the CD&A with management and recommended to the board that the CD&A be included in the annual report.
