Accounting and Stock Price Performance in Dynamic CEO Compensation Arrangements

Autor:	Augustine Duru, John F. Boschen, Kimberly J. Smith, Lawrence A. Gordon
Rok vydání:	2003
Předmět:	Economics and Econometrics Executive compensation Financial economics business.industry Accounting Economics business Finance Stock price
Zdroj:	The Accounting Review. 78:143-168
ISSN:	1558-7967 0001-4826
DOI:	10.2308/accr.2003.78.1.143
Popis:	In this study we examine the long-run effects of unexpected firm performance on CEO compensation. We find that unexpectedly good accounting performance is initially associated with increases in CEO pay. However, this initial effect soon reverses, and is followed by lower CEO pay in later years. Overall, the CEO's long-run cumulative financial gain from unexpectedly good accounting performance is not significantly different from zero. In contrast, unexpectedly good stock price performance is associated with increases in CEO pay for several years. Thus, the CEO's long-run cumulative financial gain from unexpectedly good stock price performance is positive and significant.
Databáze:	OpenAIRE
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