Compensation medicine最新文献

Revisiting the Relation between Factors Like CEO’S Tenure and Age with CEO Compensation and Corporate Performance 重新审视CEO任期、年龄等因素与CEO薪酬、公司绩效的关系

Compensation medicine Pub Date : 2011-12-21 DOI: 10.2139/ssrn.1926960

Samuel B. Bulmash, Nilesh B. Sah

{"title":"Revisiting the Relation between Factors Like CEO’S Tenure and Age with CEO Compensation and Corporate Performance","authors":"Samuel B. Bulmash, Nilesh B. Sah","doi":"10.2139/ssrn.1926960","DOIUrl":"https://doi.org/10.2139/ssrn.1926960","url":null,"abstract":"The results of this paper add significant contributions to the earlier findings that investigated various incentives to CEO’s, contingent on future returns. This paper chooses a long time horizon, and revisits the challenges of aligning CEO Compensation with Performance and Shareholders’ best interests in a dynamic and changing environment keeping in view regulations such as Sarbanes Oxley Act and in various economic macro conditions. The findings presented here show a time varying relationship and uneven effectiveness of various performance and compensation matrix packages in addressing the agency problems and enhancing performance. In fact, the paper finds that while somewhat effective in some circumstances, the results vary across time and incentives need to be reconsidered along the CEO’s Career and economic externalities. The findings presented here also confirm that CEOs who have passed the early probation test of time by having a sizeable tenure and have gained skills to develop and lead the firm and its business have a stronger relationship between compensation and firm performance. However, this in turn also might lead to entrenchment and ability to influence board support for higher compensation packages less connected to performance. Hence, the connection is nonlinear and not systemic, which might explain the low positive connectivity in the aggregate. The relatively low statistical relationships between compensation and firm performance for the whole sample overall leave room for concerns about the limited extent of their effectiveness.","PeriodicalId":90146,"journal":{"name":"Compensation medicine","volume":"12 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2011-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86521753","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}