Download or read book Executive Compensation and Investor Clientele written by Laura Frieder and published by . This book was released on 2006 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Executive compensation has increased dramatically in recent times, but so has trading volume and individual investor access to financial markets. We provide a model in which some managers obfuscate financial statements in order to extract additional compensation. Owing to a lack of sophistication or naivete, possibly arising from high opportunity costs of learning about accounting conventions and financial markets, small investors do not ascertain the extent of this behavior. Expected compensation is therefore higher when small investors form a more significant clientele in the market for a firm's stock. Our model further suggests that increased information asymmetry between large and small traders may deter the entry of small investors and keep executive compensation in check. Technologies that lower the cost of trading facilitate entry of small investors and raise expected compensation. Such compensation can in general be reduced through appropriate regulation and transparent disclosures. Empirical tests provide support to the key implication of the model that indirect executive compensation is higher in stocks with more retail investor participation.

Download or read book Institutional Investors and Executive Compensation written by Jay C. Hartzell and published by . This book was released on 2002 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: We find that institutional ownership concentration is positively related to the pay-for-performance sensitivity of executive compensation and negatively related to the level of compensation, even after controlling for firm size, industry, investment opportunities and performance. These results suggest that the institutions serve a monitoring role in mitigating the agency problem between shareholders and managers. Additionally, we find that clientele effects exist among institutions for firms with certain compensation structures, suggesting that institutions also influence compensation structures through their preferences.

Download or read book Effective Executive Compensation written by Michael Dennis Graham and published by AMACOM Div American Mgmt Assn. This book was released on 2008 with total page 545 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the Enron, Tyco, and WorldCom debacles, we all know what can happen when executives go wild. Creative accounting, inflated pay, runaway perks-and a downward spiral of the companies they run.

Download or read book Pay for Results written by Mercer, LLC and published by John Wiley & Sons. This book was released on 2009-03-17 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: The numerous incentive approaches and combinations and their implications can be dizzying even to the compensation professional. Pay for Results provides a road map for developing and implementing executive incentives that drive business needs and strategy. It is filled with specific analytic tools, including tables, exhibits, forms, checklists. In addition, it uncovers myths in performance measurement strategy and design. Timely and thorough, this book expertly shows businesses how to drive their specific needs and strategy. Human resources and compensation officers will discover how to apply performance metrics that align with shareholder investment.

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 Executive Compensation Best Practices written by Frederick D. Lipman and published by Wiley. This book was released on 2008-06-27 with total page 288 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 Responsible Executive Compensation for a New Era of Accountability written by Peter T. Chingos and published by . This book was released on 2004-03-25 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: Publisher Description

Download or read book Executive Compensation for Today s CEOs Business Owners written by Steve Smith and published by . This book was released on 2019-05-03 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: Finally a "quick read" for today's Chief Executives & 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, board compensation and capital accumulation for highly paid executives. Larry Comp, President of LTC Performance Strategies, Inc. has led hundreds of total compensation initiatives with LTC's 750+ clients 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 300 total compensation initiatives. His passion is optimizing compensation to help clients attract & retain top talent, while realizing a strong return (ROI) on their largest investment.

Download or read book Institutional Investors and Executive Compensation written by Jay C. Hartzel and published by . This book was released on 2008 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Due to institutional investors' increasing ownership and interest in corporate governance, we hypothesize that the presence of institutional investors is associated with certain executive compensation structures. We find a significantly negative relation between the level of compensation and the concentration of institutional ownership, suggesting that institutions serve a monitoring role in the shareholder-manager agency problem. We further find a significantly positive relation between the pay-for-performance sensitivity of executive compensation and both the level and concentration of institutional ownership.These results suggest that the institutions act as a complement rather than a substituteto incentive compensation in mitigating the agency problem.

Download or read book Institutional Investors and CEO Compensation written by Jae Yong Shin and published by . This book was released on 2008 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt: Institutional investors have become increasingly important as equity holders in the U.S. financial market. This book investigates the relation between the structure of CEO compensation and the composition of firms' institutional ownership in terms of investment horizons and legal type. Consistent with regulators' and investors' concerns that myopic investment behavior by some institutional investors leads managers to fear an earnings disappointment, I provide evidence that in companies with more shares held by institutions with short-term investment horizons, executive compensation is structured with preference towards these short-term institutions' preferences (e.g., more use of stock options that do not need to be expensed and larger annual bonus penalties for missing quarterly earnings benchmarks). By documenting one potential consequence of firms' ownership structure that related to the various classes of institutional shareholders in term of investment horizons, this book should be of interest to regulators, investors, board of directors, and academicians who may need to identify and mitigate undue influences from short-sighted institutional investors.

Download or read book The Effect of Executive Compensation Discretion on Investor Judgments written by and published by . This book was released on 2015 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation develops two chapters related to experimental examinations of investor perceptions. This is motivated by the need to understand the underlying causes of investment decisions, as investment decisions have large implications for firms and management decision-making. Chapter two synthesizes existing experimental research in the area of investor perceptions. Within it, I develop three main categories to group the research: investor perceptions of information formats, investor characteristics, and investor perceptions of disclosure credibility. The chapter concludes with suggestions for further research on investor expectations, perceptions of governance, and how investment position changes investor perceptions. Chapter three examines investor perceptions related to how the Board of Directors determines executive compensation. A large body of research documents the effect of firm and manager characteristics on executive compensation design and the effect of compensation on manager actions. This chapter focuses specifically on how investors view the compensation choices firms have made. I find that investors view investing in firms more negatively after reading the compensation disclosure, especially if the Board uses discretion, rather than a target-based formula, to determine executive pay. Investors have specific concerns regarding management behavior due to the information asymmetry inherent in the separation of ownership and management. Their concerns lead them to judge the financial statements as less reliable and less relevant, which lowers their likelihood to invest in the firm and their ratings of investment attraction. Hiring a compensation consultant or following the industry norm lessens investors' negative reactions to the compensation design.

Download or read book Executive Compensation written by Steven Balsam and published by Worldatwork. This book was released on 2007 with total page 556 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Institutional Investor Preferences and Executive Compensation written by Joseph A. McCahery and published by . This book was released on 2011 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Do Institutional Investors Really Reduce Executive Compensation whilst Raising Incentives written by Gavin Smith and published by . This book was released on 2013 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hartzell and Starks (2003) [HS] report that firms with more concentrated institutional investors pay executives less and make this pay more sensitive to performance. In an extended data set covering 1992 to 2010, we find that institutional concentration has no such effects when we control for firm size with a logarithmically transformed market capitalization instead of HS's raw market capitalization. This holds both in the long-run time-series and in the panel analysis. Firms that HS consider monitored do not seem to have better control of managerial compensation or performance than their unmonitored counterparts. Our results are, on the whole, inconsistent with any form of concentrated institutional monitoring.

Download or read book Executive Compensation Among Investor owned Electric Utilities written by and published by . This book was released on 1982 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Creating Value with Executive Compensation written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A recent report electrified US issuers and investors arguing that there is a major disconnect between corporate operating performance, shareholder value and incentive plans for executives. Authored by Organizational Capital Partners and commissioned by the Investor Responsibility Research Centre Institute (IRRCi), this new report has sparked issuers, investors and proxy advisors to re-think their approach for long-term executive compensation. It's also creating common ground between groups as diverse as the Center for Executive Compensation and CalSTRS. So what does this report entail, and why exactly has it gotten so many people discussing executive compensation? We are thrilled to present you with an opportunity to learn more and engage with the report author, Mark Van Clieaf, and IRRCi executive director Jon Lukomnik. During their presentation, these two experts will discuss how your executive compensation program can help drive longer-term value and give practical insights on pitfalls to avoid.