Download or read book Risk Power and Chief Executive Officer Compensation written by Dupinderjeet Kaur and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of two essays on Corporate Finance. The first essay, included in Chapter 1, looks at how manager characteristics, namely age and tenure of a CEO, influence their compensation? CEO age influences the risk aversion of a CEO, while CEO tenure increases their power within their firm. Examining data on the compensation of U.S. CEOs from 1992 through 2015, I find evidence that both CEO age and tenure influence the composition of their compensation and in different ways. The second essay, included in Chapter 2, looks at the effect of reduction in litigation risk on CEO compensation. When states pass Universal Demand Laws (UD), they reduce the legal liability of managers of firms incorporated in these states to derivative lawsuits. According to earlier research, such laws are associated with increases in corporate investment. To the degree that CEOs are compensated for such risks, then the passage of UD laws should be associated with a reduction in the affected firm's CEO compensation. While we do not find evidence that the passage of UD laws significantly reduces CEO total compensation, we do find that they are significantly correlated with changes in the composition of CEO compensation.

Download or read book A Study of the Relationships Between Chief Executive Officer Compensation Risk and Diversification Strategy written by James Jude Cordeiro and published by . This book was released on 1995 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Explaining Executive Pay written by Lukas Hengartner and published by Springer Science & Business Media. This book was released on 2007-12-31 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: Lukas Hengartner shows that both firm complexity and managerial power are associated with higher pay levels. This suggests that top managers are paid for the complexity of their job and that more powerful top managers receive pay in excess of the level that would be optimal for shareholders.

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 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 Board Control Firm Ownership Structure and Chief Executive Compensation an Empirical Analysis written by and published by . This book was released on 1997 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Research Handbook on Executive Pay written by John S. Beasley and published by Edward Elgar Publishing. This book was released on 2012-01-01 with total page 553 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research on executive compensation has exploded in recent years, and this volume of specially commissioned essays brings the reader up-to-date on all of the latest developments in the field. Leading corporate governance scholars from a range of countries set out their views on four main areas of executive compensation: the history and theory of executive compensation, the structure of executive pay, corporate governance and executive compensation, and international perspectives on executive pay. The authors analyze the two dominant theoretical approaches – managerial power theory and optimal contracting theory – and examine their impact on executive pay levels and the practices of concentrated and dispersed share ownership in corporations. The effectiveness of government regulation of executive pay and international executive pay practices in Australia, the US, Europe, China, India and Japan are also discussed. A timely study of a controversial topic, the Handbook will be an essential resource for students, scholars and practitioners of law, finance, business and accounting.

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 The Relationship Between Firm Risk and Executive Compensation written by Samuel Ray Gray and published by . This book was released on 1993 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Compensation Risk Borne by Chief Executive Officers After Refocusing written by Seemantini Madhukar Pathak and published by . This book was released on 2007 with total page 186 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Risk Taking and CEO Compensation written by Fan Ye and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper aims to analyze the impacts of compensation incentives and CEO power on firm's risk-taking by using stock return volatility (Srisk) and earnings volatility (Erisk) as the proxies of firm's risk-taking level, and by using pay-volatility sensitivity (PVS) and CEO-pay slice (CPS) as the proxies of compensation incentives and CEO power, respectively. By applying ordinary least square (OLS) regression and two-stage least square (2SLS) regression on obtained data, this paper provides strong empirical evidence that PVS and CPS have negative impact on earnings volatility and stock return volatility. In addition, the negative impact of PVS on managerial risk-taking is greater for CEOs with lower CPS than that for CEOs with higher CPS. That is, EBC discourages CEOs from taking more risks, and more powerful CEOs are less risk-averse than less powerful CEOs when granted EBC.

Download or read book Executive Compensation and Shareholder Value written by Jennifer Carpenter and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: Executive compensation has gained widespread public attention in recent years, with the pay of top U.S. executives reaching unprecedented levels compared either with past levels, with the remuneration of top executives in other countries, or with the wages and salaries of typical employees. The extraordinary levels of executive compensation have been achieved at a time when U.S. public companies have realized substantial gains in stock market value. Many have cited this as evidence that U.S. executive compensation works well, rewarding managers who make difficult decisions that lead to higher shareholder values, while others have argued that the overly generous salaries and benefits bear little relation to company performance. Recent conceptual and empirical research permits for the first time a truly rigorous debate on these and related issues, which is the subject of this volume.

Download or read book An Investigation of Chief Executive Officer Compensation written by John Raymond Deckop and published by . This book was released on 1984 with total page 322 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Value at the Top written by Ira T. Kay and published by HarperCollins Publishers. This book was released on 1992 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: A revealing examination into how top executives are driven by their compensation packages to undertake strategies far riskier than their shareholders desire--with practical solutions that can protect company assets.

Download or read book A Guide To CEO Compensation written by Truman Sojo and published by . This book was released on 2021-05-20 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pay for performance has taken on new meaning for many shareholders and boards of directors. When attacks on Wall Street banks ensued after large bonuses were paid post-bailout, quite a few shareholders felt cheated because taxpayer monies were directed toward senior executives' pocketbooks rather than their own. The banks' poor form also led to a resurgence of a true pay-for-performance mentality in corporate boardrooms. Never before have boards purposed to demonstrate credible oversight with respect to pay. In addition, the Securities and Exchange Commission (SEC) is placing more emphasis on risk oversight and the actions compensation plans motivate executives to take. Given the increased attention to pay for performance, it is important for companies to understand that the key to successful compensation plans is not the amount of compensation. Rather, it is intent and design. Simply put: CEO pay should be designed to drive a company's business strategy and create shareholder value. This study examined the relationship between chief executive officers' (CEOs') compensation components, which consisted of salary, bonus, stock options, other compensation, stock awards, nonequity incentive plans, deferred compensation earnings, and total compensation, and compared them with the organizational performance elements of earnings per share, debt-to-equity ratio, revenue, and pretax return on equity.

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 Executive Compensation and Idiosyncratic Risk written by Hum Nath Panta and published by . This book was released on 2014 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: Executive compensation is a very heavily researched area in finance, accounting and management over the last three decades. However, there are several inconclusive issues. One of them is the relationship between idiosyncratic risk and executive compensation. Prior research findings on this issue are inconclusive. In this context, this dissertation analyzes the effects of idiosyncratic risk on executive compensation. This research seeks to discover and document the role of idiosyncratic risk on all top executive compensation, CEO compensation and non-CEO executive compensation. This study will begin with an extensive review of prior studies on executive pay to identify the determinants of executive pay. Based on the prior research, this study uses the most inclusive model to find the role of idiosyncratic risk on executive pay. This research finds that there is a positive effect of idiosyncratic risk on executives' salary, bonus, equity and total compensation. When we analyze the impact of idiosyncratic risk on CEO's and non-CEO executives' compensation separately, our main findings remain unchanged. We find that idiosyncratic volatility has a positive effect on executives', CEO and non-CEO executives' salary, bonus, equity and total compensation.