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CEO Utility Pay Literature Review

852 bytes added, 17:43, 1 February 2016
Performance Terms in CEO Compensation Contracts
===Performance Terms in CEO Compensation Contracts===
[ D. D. Angelis and Y. Grinstein, “Performance Terms in CEO Compensation Contracts,” Review of Finance, vol. 19, no. 2, pp. 619–651, Mar. 2015.]
*Waiting Data from fiscal year 2007*90% of sample firms have some performance based awards*of the value of performance based awards::*79% is accounting performance measures:*13% is stock performance measures:*8% is non financial measures*larger firms (size or growth opportunities) rely heavily on Inter Library Loanmarket based measures*mature firms rely heavily on accounting based measures*performance awards: given for achieving a predetermined performance goal*Discretionary Awards: given at the discretion of the board*Figure 1 shows average CEO contract*Figure 2 shows average performance measures::*utilities are 37% market measure, 51% accounting measure, 12% non-financial measure. In accounting they are 0% sales, 78% income, 8% accounting return, 14% other*CEOs with long tenure and/or stable firm strategy will get more accounting-based measures*a lot of CEO awards are discretionary
===A comparison of CEO pay-performance sensitivity in privately-held and public firms===

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