Subbotin D.V.
Subbotin Dmitriy Valerievich – BSc in Economics,Product Manager,
Yandex Inc, Moscow
Abstract: the goal of this paper is to investigate the relationship between executive officers’ payouts and company's performance. To obtain more detailed results, we consider three major aspects of compensation: overall compensation, long-term (incentive) compensation and total cash (short-term) compensation. The results show that different performance measures are tied to different part of payouts. For this reason, very close attention must be paid to the compensation design to overcome agency problem and push CEOs act in the best effect not only on short-term company’s performance, but also long-term financial performance as well.
Keywords: compensation, CEO, KPI, rewards.
References
- Ariely D., Gneezy U., Lowenstein G. and Mazar N. (2009).Large Stakes and Big Mistakes. Review of Economic Studies. 76.451-469.
- Balafas N. and Florackis C. (2014).CEO compensation and future shareholder returns: Evidence from the London Stock Exchange. Journal of Empirical Finance. 27. 97-115.
- Barro Jason R. and Robert J. Barro. (1990).Pay, performance, and turnover of bank CEOs. Journal of Labor Economics. 8(4). 448-481.
- Brickley, J.A., Bhagat, S., & Lease, R.C. (1985).The impact of long-range managerial compensation plans on shareholder wealth. Journal of Accounting and Economics. 7. 115-129.
- Cooper M.J., Gulen H. & Rau P.R. (2014). Performance for pay? The relationship between CEO incentive compensation and future stock price performance. Working paper.
- Copeland T.E. & Weston J.F. (1988).Financial Theory and Corporate Policy (3rd ed., pp. 665-666). New York: Addison-Wesley Publications.
- Core J.E., & Wayne R.G. (1999).The use of equity grants to manage optimal equity incentive levels. Journal of Accounting and Economics. 28. 151-184.
- Gerhart B. and Milkovich G.T. (1990).Organizational Differences in Managerial Compensation and Financial Performance. The Academy of Management Journal. 33. 663-691.
- Jensen M.C. & Murphy K.J. (1990).Performance pay and top-management incentives. Journal of Political Economy. 98. 225-264.
- Murphy K.J. (1986).Incentives, Learning, and Compensation: a Theoretical and Empirical Investigation of Managerial Labor Contracts. Rand Journal of Economics, 17(1). 59-76.
Ссылка для цитирования данной статьи
|
|
Тип лицензии на данную статью – CC BY 4.0. Это значит, что Вы можете свободно цитировать данную статью на любом носителе и в любом формате при указании авторства. |
Subbotin D.V.CEO PAY-TO-PERFORMANCE RELATIONSHIP
// Проблемы науки № 2(70), 2022 - С. {см. журнал}.
|
|
|