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 - Executive compensation and board governance in US Firms
AU - Conyon, Martin
PY - 2014/2
Y1 - 2014/2
N2 - This paper investigates US executive compensation and governance. I find on average executive pay is positively correlated to firm performance and firm size. Executive pay contracts contain significant equity incentives. The use of restricted stock has become more important over time. Stock options remain an important part of executive pay. Compensation committees are generally independent and there is little evidence they result in ‘too high’ CEO pay. The Dodd-Frank Act changed the corporate governance landscape. Firms use compensation consultants that are generally engaged by the board and not management. ‘Say-on-Pay’ gave shareholders a non-binding mandatory vote on executive pay. Typically, stockholders endorse executive pay plans with very few resolutions failing.
AB - This paper investigates US executive compensation and governance. I find on average executive pay is positively correlated to firm performance and firm size. Executive pay contracts contain significant equity incentives. The use of restricted stock has become more important over time. Stock options remain an important part of executive pay. Compensation committees are generally independent and there is little evidence they result in ‘too high’ CEO pay. The Dodd-Frank Act changed the corporate governance landscape. Firms use compensation consultants that are generally engaged by the board and not management. ‘Say-on-Pay’ gave shareholders a non-binding mandatory vote on executive pay. Typically, stockholders endorse executive pay plans with very few resolutions failing.
U2 - 10.1111/ecoj.12120
DO - 10.1111/ecoj.12120
M3 - Journal article
VL - 124
SP - F60-F89
JO - Economic Journal
JF - Economic Journal
SN - 0013-0133
IS - 574
ER -