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Executive Compensation: Empirical Essays on the Antecedents and the Consequences, and the Role of Executive Personality

Author : Steffen Florian Burkert

Publisher : BoD – Books on Demand

Page : 233 pages

File Size : 16,3 MB

Release : 2023-03-10

Category : Business & Economics

ISBN : 3947095104

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Book Description

Top managers have a significant impact on organizations because they are responsible for the formulation and implementation of corporate strategies, have the visibility and influence to shape the opinions of internal and external stakeholders, and coin the culture of their organizations, affecting employees at every level of the organization. Research has focused on the drivers and consequences of top managers' actions, with a particular focus on executive compensation, but important questions remain unanswered. This dissertation contributes to the literature on top executives by examining the antecedents of executive compensation, the influence of executive compensation on executive behavior, and the interplay of executive compensation and top executive personality. The first study introduces the role of compensation benchmarking for determining executive compensation to the management literature. It finds that benchmarking leads to compensation convergence. The second study examines the impact of executive compensation complexity on firm performance. The results show that compensation complexity is negatively related to accounting-based, market-based, and ESG-based metric of firm performance. The third study explores the implications of relative performance evaluation (RPE) on the imitation behavior of firms. It finds that the introduction of RPE is positively related to the imitation of the strategic actions of peer firms. The fourth study contributes to the growing literature on the impact of corporate social performance (CSP) goals in CEO contracts. Specifically, it examines how and when CSP incentives influence the CEO's attention to corporate social responsibility topics. The final essay examines the role of CEO personality; it finds that differences in CEO personality explain differences in the level of strategic conformity. Taken together, the essays in this dissertation make a significant contribution to the scholarly discourse on the influence of top managers on their companies. The empirical evidence presented expands the current understanding of how top executives affect strategic firm behaviors, and it provides insights for policymakers, managers, and investors.



Complex Compensation: Empirical Essays on the Impact of Compensation Design on Firm Performance, Turnover, and Organizational Justice

Author : Tobias Oberpaul

Publisher : BoD – Books on Demand

Page : 202 pages

File Size : 50,31 MB

Release : 2024-01-19

Category : Business & Economics

ISBN : 3947095112

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Book Description

Compensation contracts have become ever more complex and individualized, particularly in the executive compensation domain, where increasingly diverse stakeholder demands and governance requirements have led to the inclusion of more and increasingly interrelated components into compensation contracts. Even the compensation of lower-level employees has become complex as firms individualize employee compensation and use many different rewards simultaneously. Research has examined elements of compensation in isolation but has attempted to avoid the complexities of compensation. This dissertation examines the consequences of compensation complexity and compensation design dispersion and contributes to a better understanding of compensation and its consequences for firms and employees. The first study examines how the complexity of executive compensation contracts affects firm performance. It finds that CEO compensation complexity negatively affects accounting, market, and ESG (i.e., environmental, social, and governance) metrics of firm performance and explores mechanisms that help explain the relationships. The second study examines the effect of compensation design dispersion within top management teams and its impact on executive turnover. The results show that compensation design dispersion affects executive turnover, both directly and in interaction with relative pay level. The third study addresses the role of compensation design dispersion in the development of procedural justice perceptions. Using two experiments, this study shows that compensation design dispersion causes lower procedural justice perceptions, which appears to be less problematic for participants with relatively easier to understand contracts. In summary, this dissertation provides a nuanced overview of complex compensation design and compensation design dispersion. The findings contribute to a better understanding of the effectiveness of compensation as an incentive and sorting tool for organizations, and of the implications of compensation design for the functioning of teams.



Essay Upon the Law of Contracts and Agreements

Author : John Joseph Powell

Publisher : The Lawbook Exchange, Ltd.

Page : 488 pages

File Size : 12,39 MB

Release : 2005

Category : Contracts

ISBN : 1584775203

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Book Description

Powell, John Joseph. Essay Upon the Law of Contracts and Agreements. Walpole: Printed, At the Press of Thomas & Thomas, by David Newhall, 1802. Two volumes. Reprint available January 2005 by the Lawbook Exchange, Ltd. ISBN 1-58477-520-3. Cloth. $150. * Reprint of the first American edition of the first treatise on the subject. (It is based on the first London edition, 1790, to which it is starred.) Powell [1755?-1801] wrote several distinguished treatises that were used widely in England and America, including this one. Though mildly critical of its organization, Holdsworth considers it "an able book" that "is much more than a digest of cases" because "[i]n all cases the author tries, with considerable success, to state principles, and to illustrate them by cases.": History of English Law XII:392.



Pay Without Performance

Author : Lucian A. Bebchuk

Publisher : Harvard University Press

Page : 308 pages

File Size : 46,9 MB

Release : 2004

Category : Business & Economics

ISBN : 9780674020634

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Book Description

The company is under-performing, its share price is trailing, and the CEO gets...a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers' influence over their own pay--and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders. Lucian Bebchuk and Jesse Fried demonstrate that corporate boards have persistently failed to negotiate at arm's length with the executives they are meant to oversee. They give a richly detailed account of how pay practices--from option plans to retirement benefits--have decoupled compensation from performance and have camouflaged both the amount and performance-insensitivity of pay. Executives' unwonted influence over their compensation has hurt shareholders by increasing pay levels and, even more importantly, by leading to practices that dilute and distort managers' incentives. This book identifies basic problems with our current reliance on boards as guardians of shareholder interests. And the solution, the authors argue, is not merely to make these boards more independent of executives as recent reforms attempt to do. Rather, boards should also be made more dependent on shareholders by eliminating the arrangements that entrench directors and insulate them from their shareholders. A powerful critique of executive compensation and corporate governance, Pay without Performance points the way to restoring corporate integrity and improving corporate performance.





Liability and Responsibility

Author : R. G. Frey

Publisher : Cambridge University Press

Page : 450 pages

File Size : 39,14 MB

Release : 1991-03-29

Category : Law

ISBN : 9780521392167

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Book Description

This collection not only presents some of the most challenging work in legal philosophy, but it also demonstrates the interdisciplinary character of the field of philosophy of law, with contributors taking into account developments in economics, political science and rational choice theory.



Research Handbook on Executive Pay

Author : John S. Beasley

Publisher : Edward Elgar Publishing

Page : 553 pages

File Size : 33,37 MB

Release : 2012-01-01

Category : Business & Economics

ISBN : 1781005109

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Book Description

Research on executive compensation has exploded in recent years, and this volume of specially commissioned essays brings the reader up-to-date on all of the latest developments in the field. Leading corporate governance scholars from a range of countries set out their views on four main areas of executive compensation: the history and theory of executive compensation, the structure of executive pay, corporate governance and executive compensation, and international perspectives on executive pay. The authors analyze the two dominant theoretical approaches – managerial power theory and optimal contracting theory – and examine their impact on executive pay levels and the practices of concentrated and dispersed share ownership in corporations. The effectiveness of government regulation of executive pay and international executive pay practices in Australia, the US, Europe, China, India and Japan are also discussed. A timely study of a controversial topic, the Handbook will be an essential resource for students, scholars and practitioners of law, finance, business and accounting.