Internal versus External CEO Choice and the Structure of Compensation Contracts

被引：12

作者：

Palomino, Frederic ^{[1
]}

Peyrache, Eloic ^{[2
]}

机构：

[1] EDHEC Business Sch, Dept Econ, F-75002 Paris, France

[2] HEC Paris, Finance & Econ Dept, F-78351 Jouy En Josas, France

来源：

JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS | 2013年 / 48卷 / 04期

关键词：

LIMITED-LIABILITY; EXECUTIVE-COMPENSATION; STOCK-OPTIONS; MORAL HAZARD; TRADE-OFF; INCENTIVES; RISK; PAY; DESIGN; FIRMS;

D O I：

10.1017/S0022109013000434

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Any firm choosing a chief executive officer (CEO) faces a double problem: candidate selection and choice of a compensation scheme. We derive sufficient conditions where the unique optimal compensation scheme is a capped-bonus contract in a pure moral-hazard environment, while equity is used when the firm also faces adverse selection. Then, we provide a rationale for the simultaneous increases in CEO pay, use of equity in compensation, and external hiring of CEOs. Our results are consistent with empirical evidence that shows externally hired CEOs earn more than those internally hired and that externally hired CEOs get a higher fraction of their compensation equity based.

引用

页码：1301 / 1331

页数：31

共 50 条

[31] THE IMPLEMENTATION OF SPECIAL ATTRIBUTES OF CEO COMPENSATION CONTRACTS AROUND M&A TRANSACTIONS
Bodolica, Virginia
Spraggon, Martin
STRATEGIC MANAGEMENT JOURNAL, 2009, 30 (09) : 985 - 1011
[32] Internal and external reference dependence of incomplete contracts: Experimental evidences
Feng, Jun
Ho, Chun-Yu
Qin, Xiangdong
JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION, 2022, 203 : 189 - 209
[33] Corporate Social Responsibility, CEO Compensation Structure, and Corporate Innovation Activities
Choi, Bu-Kyung
Ahn, Ji-Young
Choi, Myeong-Cheol
SUSTAINABILITY, 2021, 13 (23)
[34] MANAGEMENT POWER OR BOARD POWER? DETERMINANTS OF CEO COMPENSATION LEVELS AND STRUCTURE BASED ON A META-ANALYSIS
Wang, Xiaoying
Kang, Canhua
Yin, Zongyi
Yue, Wenwen
TRANSFORMATIONS IN BUSINESS & ECONOMICS, 2021, 20 (2B): : 905 - 924
[35] Board Structure, CEO Equity-Based Compensation, and Financial Performance: Evidence from MENA Countries
Aljughaiman, Abdullah A.
Almulhim, Abdulateif A.
Al Naim, Abdulaziz S.
INTERNATIONAL JOURNAL OF FINANCIAL STUDIES, 2024, 12 (01):
[36] Influential independent directors' reputation incentives: Impacts on CEO compensation contracts and financial reporting
Masulis, Ronald W.
Mobbs, Shawn
JOURNAL OF CORPORATE FINANCE, 2023, 82
[37] Internal versus external agglomeration advantages in investment location choice: The role of global cities' international connectivity
Belderbos, Rene
Castellani, Davide
Du, Helen S.
Lee, Geon Ho
JOURNAL OF INTERNATIONAL BUSINESS STUDIES, 2024, 55 (06) : 745 - 763
[38] Determinants of CEO compensation: Generalist-specialist versus insider-outsider attributes
Brockman, Paul
Lee, Hye Seung
Salas, Jesus M.
JOURNAL OF CORPORATE FINANCE, 2016, 39 : 53 - 77
[39] Changes in CEO compensation structure and the impact on firm performance following CEO turnover
Blackwell D.W.
Dudney D.M.
Farrell K.A.
Review of Quantitative Finance and Accounting, 2007, 29 (3) : 315 - 338
[40] The IT Compensation Challenge: Theorizing the Balance Among Multi-Level Internal and External Uncertainties
Wang, Chingning
Kaarst-Brown, Michelle L.
JOURNAL OF THE ASSOCIATION FOR INFORMATION SYSTEMS, 2014, 15 (03): : 111 - 146

← 1 2 3 4 5 →