The choice of performance measures in CEO bonus contracts and ...

The Choice of Performance Measures in Annual Bonus Contracts

Second, independent of the measures' informativeness, non-financial measures may be incorporated by powerful CEOs to increase compensation above the level.

They argue that financial performance measures, which are predominantly used when determining cash bonuses in the US, encourage earnings management. They ...

The choice of performance measures in CEO bonus contracts and ...

This paper examines the importance of the choice of performance measures in CEO bonus contracts in constraining earnings management both through accruals and ...

[PDF] The choice of performance measures in annual bonus contracts

This paper examines the factors influencing the relative weights placed on financial and non-financial performance measures in CEO bonus contracts.

Solved In their journal article "The Choice of Performance | Chegg.com

In their journal article "The Choice of Performance Measures in Annual Bonus Contracts," Ittner, Larcker, and Rajan (1997) examined the factors ...

The choice of performance measures in CEO bonus contracts and ...

Getting compensation right - The choice of performance measures in CEO bonus contracts and earnings management · Downloads · Licence · Publication metadata.

Ittner Incentives and Control Week 3 - The Choice of Performance ...

Only 4% of the firms base annual CEO bonuses on stock price returns. In contrast to the single financial measure used in the median bonus plan, the firms in our ...

Performance Measures in CEO Annual Bonus Contracts*

the choice of performance measures in executive compensation contracts. The usefulness of accounting accruals has been explored extensively in the stock ...

The choice of performance measures, target setting and vesting ...

This article analyses factors influencing the choice of performance measure in CEO equity-based compensation, for a sample of 3,400 plans ...

Performance Measures in CEO Annual Bonus Contracts

This paper investigates the compensation usefulness of accounting variables along several important dimensions (accruals-based vs. cash-flows based, ...

The Choice of Different Types of Subjectivity in CEO Annual Bonus ...

The objective of this study is to examine the choice of subjectivity in CEO annual bonus contracts. Although the annual bonus represents a small ...

A Guide to CEO Compensation - Investopedia

Company boards, at least in principle, try to use compensation contracts to align executives' actions with company success. The idea is that CEO performance ...

Performance Terms in CEO Compensation Contracts*

On average, 79% of the estimated value of performance- based awards is based on accounting performance measures, 13% is based on stock performance measures ( ...

(PDF) The choice of performance measures, target setting and ...

This paper analyses factors influencing the choice of performance measure in CEO compensation contracts, for a sample of 3,400 plans from 400 UK ...

CEO Incentives—It's Not How Much You Pay, But How

Because the stakes are so high, the potential increase in corporate performance and the potential gains to shareholders are great. How Compensation Measures Up.

Do boards effectively link firm objectives to CEO bonus performance ...

Hölmstrom (1979) argues that optimal contracts are those that incentivize desirable CEO actions by including performance measures that are ...

The use of nonfinancial performance measures in CEO bonus ...

of directors, especially compensation committee members, who are interested in improving the design of executive incentive contracts to better align managerial.

Performance Terms in CEO Compensation Contracts

According to these new requirements, firms now must provide additional information about the contractual terms of their compensation to the CEO.

In their journal article "The Choice of Performance Measures in...

The research findings of Ittner, Larcker, and Rajan (1997) revealed the choice of performance measures used in CEO bonus contracts to be largely ...

Do Cash-Flow Performance Metrics in CEOs' Compensation ...

2011; Mao and Zhang 2018; Nguyen 2018). A crucial aspect that remains largely unexplored in these studies is the specific choice of performance ...