Duration of Executive Compensation

Radhakrishnan Gopalan · Todd T. Milbourn · Fenghua Song · Anjan V. Thakor

352 citations0/0 files storedThe Journal of Finance

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Financial Markets and Investment Strategies Auditing, Earnings Management, Governance

Abstract

ABSTRACT Extensive discussions on the inefficiencies of “short‐termism” in executive compensation notwithstanding, little is known empirically about the extent of such short‐termism. We develop a novel measure of executive pay duration that reflects the vesting periods of different pay components, thereby quantifying the extent to which compensation is short‐term. We calculate pay duration in various industries and document its correlation with firm characteristics. Pay duration is longer in firms with more growth opportunities, more long‐term assets, greater R&D intensity, lower risk, and better recent stock performance. Longer CEO pay duration is negatively related to the extent of earnings‐increasing accruals.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 352 citations exist upstream.

References

1991Earnings Management During Import Relief Investigations 1979Moral Hazard and Observability 2005The economic implications of corporate financial reporting 1999Corporate governance, chief executive officer compensation, and firm performance 2005Managerial incentives and risk-taking☆2008What Matters in Corporate Governance?1996Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future Earnings?2003Executive Compensation as an Agency Problem

Cited by

2016What's in an education? Implications of CEO education for bank performance 2016Executive Compensation: A Modern Primer 2017Innovation Strategy of Private Firms 2015CORPORATE GOVERNANCE OF BANKS: A SURVEY 2015Corporate Governance and Bank Risk‐taking 2018Portfolio Manager Compensation in the U.S. Mutual Fund Industry

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.