Executive compensation and corporate risk management

Executive compensation and corporate risk management - Yun - 2023

Corporate decisions, including executive compensation and corporate hedging, are made simultaneously. For instance, Aggarwal and Samwick (1999) ...

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

This paper contributes to the literature on the relationship among executive option compensation, risk-taking incentives, and the cost of debt. One line of ...

Executive compensation and corporate risk management

We find that the decline in the convexity of executive compensation following FAS 123R led firms to significantly increase corporate risk management, primarily ...

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

Given that higher executive compensation is related to riskier corporate decision in firms, this study incorporates total wealth (i.e. ...

Executive Compensation and Risk Taking

CEO pension benefits may sometimes be negotiated, but they usually accrue to managers under company-wide formulas established by each company. Deferred ...

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 ...

CEO Compensation and Adverse Shocks: Evidence from Changes ...

Although corporate finance theory suggests how adverse shocks influence shareholder preferences toward corporate risk-taking and executive ...

CEO Compensation and Corporate Risk-Taking: Evidence from a ...

We find that, after risk increases, boards reduce managers' exposure to their firms' risk, but managers' total compensation portfolios remain relatively sticky ...

The Life Cycle of CEO Compensation - Harvard Business Review

It's been an urgent question since the start of the Great Recession: Does equity-based CEO compensation encourage excessive risk taking?

Taking Stock of Corporate Risk-Taking

This study offers unique insights to boards and the board subcommittees tasked with executive compensation and risk management. Most notably, we ...

Appropriately factoring risk into executive compensation - WTW

It should be possible to quantify a company's overall risk level and incorporate that measurement into executive incentive plans. The measure(s) ...

CEO Incentives for Risk-Taking and Compensation Duration

Although corporate boards have many complexities to address in their design of CEO compensation contracts, we focus on the tradeoff between the effects of two ...

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

Given that higher executive compensation is related to riskier corporate decision in firms, this study incorporates total wealth (i.e. accumulated equity ...

Executive compensation linked to corporate social responsibility and ...

While most of these studies report that option-based compensation motivates managers to increase risk, there are a few studies that point out ...

Executive compensation, risk, and performance: Evidence from the US

Firm size, ROA, and CEO turnover are reported to affect compensation and corporate decisions, therefore included as control variables. Given that higher ...

The Fit Between CEO Compensation Design and Firm Risk

We examined the effects of unsystematic and systematic firm risk on CEO compensation risk bearing and total pay. Both the proportion of variable pay in CEO ...

CEO Compensation Incentives and Playing It Safe: Evidence from ...

Our findings suggest that decrease in risk-taking incentives provided by option compensation, when not compensated for by alternative incentives or governance ...

The Impact of CEO Compensation on Firm Risk

After finalizing this thesis my master in Business Administration (Msc) with the specialization in Financial Management at the University of ...

CEO Compensation and Corporate Risk: Evidence from a Natural ...

This paper examines the two-way relationship between managerial compensation and corporate risk by exploiting an unanticipated change in firms' business risks.

Executive Compensation and Risk Taking* | Review of Finance

It is well known that structuring chief executiver officer (CEO) incentives to maximize shareholder value in a levered firm tends to encourage excess risk ...