Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - CEO Compensation, Incentives and Governance in New Enterprise Firms
AU - He, Lerong
AU - Conyon, Martin
PY - 2004
Y1 - 2004
N2 - This study investigates executive compensation, corporate governance and the determination of CEO equity incentives in US entrepreneurial high technology firms. We find the following. First, CEO equity incentives in these new enterprise firms are twenty times larger than that which previous large firm studies have found. Second, both economic factors (firm size, growth opportunities, and risk) and governance factors (founder, venture capitalist presence, board structure, and ownership distribution) determine CEO incentives in these firms. We document instances where direct monitoring arrangements (e.g. venture capitalist monitoring) act as substitutes for explicit incentives in aligning shareholder and CEO interests.
AB - This study investigates executive compensation, corporate governance and the determination of CEO equity incentives in US entrepreneurial high technology firms. We find the following. First, CEO equity incentives in these new enterprise firms are twenty times larger than that which previous large firm studies have found. Second, both economic factors (firm size, growth opportunities, and risk) and governance factors (founder, venture capitalist presence, board structure, and ownership distribution) determine CEO incentives in these firms. We document instances where direct monitoring arrangements (e.g. venture capitalist monitoring) act as substitutes for explicit incentives in aligning shareholder and CEO interests.
KW - Corporate governance
KW - pay for performance
KW - equity incentives
U2 - 10.1142/S0219868104000051
DO - 10.1142/S0219868104000051
M3 - Journal article
VL - 1
SP - 47
EP - 60
JO - Journal of Derivatives Accounting
JF - Journal of Derivatives Accounting
SN - 0219-8681
IS - 1
ER -