Executive Compensation and Risk Taking

Executive Compensation and Risk Taking* | Review of Finance

This article studies the connection between risk taking and executive compensation in financial institutions.

Executive pay and Risk-taking - Harvard Law School

We explain how banks' financing structures and incentive pay arrangements incentivized executives to take excessive risks, how these incentives were amplified ...

Executive compensation and risk taking - EconStor

This paper studies the connection between risk taking and executive compensation in financial institutions. A theoretical model of shareholders, debtholders ...

CEO Compensation and Risk Threshold: How They Relate - Newcleus

Other incentives that keep CEOs from taking excessive risk include bonuses, pension plans, and deferred compensation plans. Although this is not ...

Executive Compensation and Risk Taking* | Review of Finance

Abstract. This article studies the connection between risk taking and executive compensation in financial institutions. A model of shareholders, debtholder.

Executive compensation and corporate risk-taking: Evidence from ...

We examine how management stock options affect corporate risk taking. We exploit exogenous variation in stock option grants generated by FAS 123R and use loan ...

CEO compensation and bank risk Is ... - ScienceDirect.com

We find that, on average, bank CEOs receive less cash compensation, are less likely to participate in a stock option plan, hold fewer stock options, and receive ...

Executive compensation, risk and performance: evidence from the ...

In this study, the riskier corporate decision is measured as book leverage and ratio of R&D expense to total assets. Chief executive officers' ( ...

How executive incentive design affects risk-taking: a literature review

The steeper the compensation function is, the more firm performance affects executives' wealth. Theory suggests that curvature helps to manage ...

Relative Wealth Concerns, Executive Compensation, and ...

This paper theoretically examines how relative wealth concerns affect equilibrium contracting and systemic risk-taking.

Executive Compensation and Risk Taking

This paper studies the connection between risk taking and executive compensation in financial institutions. ... The paper also provides an empirical analysis that ...

Executive compensation and risk taking - IDEAS/RePEc

This paper studies the connection between risk taking and executive compensation in financial institutions. ... The paper then provides an empirical analysis that ...

CEO Incentives for Risk-Taking and Compensation Duration

I. INTRODUCTION · In constructing CEO compensation contracts, boards of directors consider the incentives that arise from the horizon (duration) of the equity ...

The Life Cycle of CEO Compensation - Harvard Business Review

Our research refines a theory from the 1990s, demonstrating that equity pay can both encourage and discourage risk taking.

Paying for Risk: Bankers, Compensation, and Competition

They presume that the financial crisis was caused by CEOs who failed to supervise risk-taking employees. The responses focus on executive pay, believing that ...

How Important are Risk-Taking Incentives in Executive Compensation

Risk-taking incentives are important in CEO compensation contracts, because CEOs are often heavily exposed to firm-specific risk through their ...

Executive Compensation and Risk Taking - Review of Finance

We propose tying a CEO's compensation in part to the financial firm's credit default swap (CDS) spread, which provides a market estimate of the default risk of ...

How temporal focus shapes the influence of executive ...

As a result of this endowment effect, executives are risk averse with current wealth and risk seeking with prospective wealth. These relationships, however, ...

Executive Compensation and Risk Taking - Search eLibrary :: SSRN

This paper studies the connection between risk taking and executive compensation in financial institutions. A theoretical model of ...

How Important Are Risk-Taking Incentives in Executive ...

The researchers find that including risk-taking incentives does help to explain observed compensation practice. Using a sample of 1,707 U.S. CEOs, the study ...