Changes in the Structure of CEO Compensation and the Firm's Pay- Performance Sensitivity Following CEO Turnover
| Author | : David W. Blackwell |
| Publisher | : |
| Total Pages | : |
| Release | : 2011 |
| ISBN-10 | : OCLC:1290789845 |
| ISBN-13 | : |
| Rating | : 4/5 (45 Downloads) |
Download or read book Changes in the Structure of CEO Compensation and the Firm's Pay- Performance Sensitivity Following CEO Turnover written by David W. Blackwell and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We document significant improvements in earnings and stock returns after CEO turnover. Compared to old CEOs, new CEOs derive more of their compensation from salary and bonus and option grants, but less from stock holdings. The sensitivity of pay to performance increases significantly after a change in CEO. The salary and bonus of the new CEO is much more sensitive to performance than that of the old CEO; stock holdings and option grants are less sensitive. Changes in pay-performance sensitivity are greater after exogenous turnover than after exogenous turnover.
