The sensitivity of CEO wealth to equity risk: an analysis of the magnitude and determinants

Article Abstract:

Shareholders supervise the risk-related incentives associated with the compensation of their chief executive officers by linking a firm's performance to the compensation of managers. Research suggests that the convexity of renumeration of managers based on stocks significantly affects investment decisions. This finding supports the theory that managers are given incentives to undertake risky projects when the possible losses from lack of investments in costly risk-enhancing projects is highest.

Research, Economic aspects, Stockholders, Risk (Economics), Compensation management, Executives, Executive compensation

---

An empirical examination of the costs and benefits of executive stock options: Evidence from Japan

Article Abstract:

When Japanese firms adopted stock option plans as compensation to employees, the operation performance was improved showing that the creation of shareholder value is consistent with well designed compensation plans.

Japan, Personnel administration, Securities issued, listed, Venture Analysis, Human resource management, Securities, Investor relations, Company personnel management, Company securities

---

Stock option plans for non-executive employees

Article Abstract:

Firms facing capital requirements and financing constraints tend to use stock option compensation or to attract types of employees or to increase firm value.

United States, Evaluation, Employee incentives, Stock options

Similar abstracts:

• Abstracts: BOC manufacture of telecommunications equipment: an assessment of benefits and competitive risks. The MFJ: an imperfect solution
• Abstracts: A time series analysis of the relationship between inflation uncertainty and unemployment. Time aggregation and the money-real GDP relationship
• Abstracts: On the economic rationale of estimating the hidden economy. Uses and abuses of estimates of the underground economy
• Abstracts: Leadership style to withstand the test of time. An ear to the ground and one foot in the furrow. Caterpillar dedicates new facility
• Abstracts: The effect of external finance on the equilibrium allocation of capital. The balance of power in closely held corporations

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.