Management-board relationships, takeover risk, and the adoption of golden parachutes

Article Abstract:

This study compared the characteristics of the top management and boards of directors in large firms that have adopted golden parachutes for CEOs with those of an industry- and size-matched control group. The results indicated that firms that have experienced takeover threats are more likely to adopt golden parachutes than firms that have not. The findings also showed that firms adopting golden parachutes have relatively higher diffusion of stock ownership, higher tenure of the CEO vis-a-vis that of board members, and a higher proportion of external directors on their boards. (Reprinted by permission of the publisher.)

Corporate officers, Tender offers (Securities), Tender offers, Golden parachutes

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Response to relational view commentary

Article Abstract:

Molina's commentary ponders the relationship between the relational view and existing theoretical approaches such as the resource-based view. In the process, Molina brings up several important points, notably the need to reorder the strategic process and the value of using interorganizational relations instead of the individual firm as the unit of analysis in strategic research. On both of these points, Molina is right. However, Molina errs when he suggests that resource-based principles should be revised to accomodate the relational view.

Competition (Economics)

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CEO stock options: the silent dimension of ownership

Article Abstract:

This research article shows that the exercise of stock options by CEOs has no impact upon the executives' equity, and also does not have a relationship with the company's performance.

Canada, Financial management, Science & research, Executive changes & profiles, Personnel administration, Business, Officials and employees, Economic aspects, Finance, Compensation and benefits, Stock options, Business research, Company financing

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