Equity-Based Compensation for Firm Performance
Title | Equity-Based Compensation for Firm Performance PDF eBook |
Author | Unyong Pyo |
Publisher | |
Pages | 41 |
Release | 2017 |
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ISBN |
The paper finds evidence that the equity-based compensation is positively related to firm performance and risk-taking. Both stock price and operating performance as well as firm's risk-taking increase with incentives provided by CEO stock options and stock holdings. The pay-performance sensitivity can explain stock returns better as an additional factor to the Fama-French 3-factor model. When CEOs are compensated with the higher PPS, firms experiences the higher return on asset. The higher pay-volatility sensitivity also leads to the higher risk-taking. While CEO incentive compensation has been perceived mixed on its effectiveness, this study provides support to the equity-based CEO compensation in reducing agency conflicts between CEOs and shareholders.
Equity-Based Compensation for Employees
Title | Equity-Based Compensation for Employees PDF eBook |
Author | Melissa B. Frye |
Publisher | |
Pages | |
Release | 2003 |
Genre | |
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I examine the effect of employee equity-based compensation (EBC) on firm performance and the determinants of EBC. Using two samples, I find that firms have come to rely more heavily on EBC than in the past. For both samples, I document a significant, positive relation between Tobin's q and the percentage of employee compensation that is equity based. For accounting returns, I find a positive relation with the earlier sample. However, for the later sample I find that greater use of EBC leads to lower levels of future accounting returns. I also find that the determinants of the proportion of EBC are different between the two samples.
Passing the Baton
Title | Passing the Baton PDF eBook |
Author | Richard F. Vancil |
Publisher | Harvard Business Review Press |
Pages | 352 |
Release | 1987 |
Genre | Business & Economics |
ISBN |
Pay Without Performance
Title | Pay Without Performance PDF eBook |
Author | Lucian A. Bebchuk |
Publisher | Harvard University Press |
Pages | 308 |
Release | 2004 |
Genre | Business & Economics |
ISBN | 9780674020634 |
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.
Pay for Results
Title | Pay for Results PDF eBook |
Author | Mercer, LLC |
Publisher | John Wiley & Sons |
Pages | 288 |
Release | 2009-03-17 |
Genre | Business & Economics |
ISBN | 047047811X |
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.
Executive Compensation Structure, Ownership and Firm Performance
Title | Executive Compensation Structure, Ownership and Firm Performance PDF eBook |
Author | Hamid Mehran |
Publisher | |
Pages | |
Release | 1998 |
Genre | |
ISBN |
An examination of the executive compensation structure of 153 randomly-selected manufacturing firms in 1979-1980 provides evidence supporting advocates of incentive compensation, and also suggests that the form rather than the level of compensation is what motivates managers to increase firm value Firm performance is positively related to the percentage of equity held by managers and to the percentage of their compensation that is equity-based. Moreover, equity-based compensation is used more extensively in forms with more outside directors. Finally, firms in which a higher percentage of the shares are held by insiders or outside blockholders use less equity-based compensation.
Effect of Executive Compensation on Firm Performance
Title | Effect of Executive Compensation on Firm Performance PDF eBook |
Author | Mohammad Yameenul Abedin |
Publisher | |
Pages | |
Release | 2015 |
Genre | |
ISBN |