Recent Trends in Executive Compensation: Are They Pareto Improving?

Igor Salitskiy
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引用次数: 1

Abstract

In recent years firms have been shifting their executive compensation packages from plain stock and option grants to grants with accounting-based performance vesting provisions and awards that benchmark firm performance against those of a designated peer group. One potential explanation for this trend is that firms want to improve the signal-noise ratio of performance measures. This paper directly tests this hypothesis. It estimates the statistical relationship between various performance measures and computes the optimal combination of awards. It finds that the observed trend is consistent with compensation optimization. It also finds that firms with higher potential gains from switching to alternative performance characteristics have increased their usage more than other firms.
高管薪酬的最新趋势:是否在帕累托改善?
近年来,公司一直在将高管薪酬方案从单纯的股票和期权授予,转变为带有基于会计的业绩授予条款和奖励,这些条款和奖励将公司的业绩与指定的同行进行比较。对这一趋势的一个潜在解释是,公司希望提高业绩衡量的信噪比。本文直接验证了这一假设。它估计各种绩效指标之间的统计关系,并计算奖励的最佳组合。结果表明,观测到的趋势与补偿优化是一致的。它还发现,从转换到替代绩效特征中获得更高潜在收益的公司比其他公司更多地增加了它们的使用。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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