scholarly journals Executive pay and firm performance: methodological considerations and future directions

Author(s):  
Beth Florin ◽  
Kevin F. Hallock ◽  
Douglas Webber
GIS Business ◽  
2016 ◽  
Vol 11 (5) ◽  
pp. 01-13
Author(s):  
Simon Yang

This paper examines the relative sensitivity of CEO compensation of both acquiring and acquired firms in the top 30 U.S. largest corporate acquisitions in each year for the period of 2003 to 2012. We find that total compensation and bonus granted to executive compensation for acquired companies, not acquiring companies, are significantly related to the amount of acquisition deal even after the size and firm performance are controlled for. Both acquiring and acquired CEOs are found to make the significantly higher compensation than the matched sample firms in the same industry and calendar year. We also find that executives with higher managerial power, as measured by a lower salary-based compensation mix, prior to a corporate acquisition are more likely to receive a higher executive pay in the year of acquisition. The association between executive compensation and managerial power seems to be stronger for acquired firms than for acquiring firms in corporate acquisition. Overall, our findings suggest that corporate acquisition has higher impacts on executive compensation for acquired firm CEOs than for acquiring firm CEOs.


2019 ◽  
Author(s):  
Karita Ojala ◽  
Dominik R Bach

Threat conditioning is a laboratory model of associative learning across species that is often used in research on the etiology and treatment of anxiety disorders. At least 10 different conditioned responses (CR) for quantifying learning in human threat conditioning are found in the literature. In this narrative review, we discuss these CR by considering the following questions: (1) Are the CR indicators of amygdala-dependent threat learning? (2) To what components of formal learning models do the CR relate? (3) How well can threat learning be inferred from the CR? Despite a vast literature, these questions can only be answered for some CR. Among the CR considered, heart period, startle eye-blink and Pavlovian-to-instrumental transfer are most clearly related to amygdala-dependent threat learning. Formal learning models have mostly been studied for skin conductance responses, which are likely to reflect threat prediction and its uncertainty. Startle eye-blink and pupil size appear to best differentiate CS+/CS−, although few direct comparisons between CR exist. We suggest future directions for improving the quantification of threat conditioning.


2017 ◽  
Vol 18 (2) ◽  
pp. 1-31
Author(s):  
Andre Honoree ◽  
Mario Krenn

A limitation in the downsizing literature is its lack of attention on how firms’ institutional context interacts with firm’s internal drivers of employee downsizing. This study examines the firm performance - employee downsizing relationship in 1,747 firms across 35 countries over three years and demonstrates that while this relationship is similar among firms across countries, its magnitude varies across countries, and that the cultural dimensions of in-group collectivism, power distance, uncertainty avoidance help explain this variance. Implications from these findings and future directions for employee downsizing research and practice are discussed.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meriem Ghrab ◽  
Marjène Gana ◽  
Mejda Dakhlaoui

Purpose The purpose of this study is to analyze the CEO compensation sensitivity to firm performance, termed as the pay-for-performance sensitivity (PPS) in the Tunisian context and to test the robustness of this relationship when corporate governance (CG) mechanisms are considered. Design/methodology/approach The consideration of past executive pay as one of the explanatory variables makes this estimation model a dynamic one. Furthermore, to avoid the problem of endogeneity, this study uses the system-GMM estimator developed by Blundell and Bond (1998). For robustness check, this study aims to use a simultaneous equation approach (three-stage least squares [3SLS]) to estimate the link between performance and CEO pay with a set of CG mechanisms to control for possible simultaneous interdependencies. Findings Using a sample of 336 firm-years from Tunisia over the 2009–2015 periods, this study finds strong evidence that the pay-performance relationship is insignificant and negative, and it becomes more negative or remains insignificant after introducing CG mechanisms consistently with the managerial power approach. The findings are robust to the use of alternative performance measures. This study provides new empirical evidence that CEOs of Tunisian firms abuse extracting rents independently of firm performance. Originality/value This study contributes to the unexamined research on PPS in a frontier market. This study also shows the ineffectiveness of the Tunisian CG structure and thus recommends for the legislator to impose a mandatory CG guide.


2007 ◽  
Vol 22 (4) ◽  
pp. 599-621 ◽  
Author(s):  
Steven Balsam ◽  
David H. Ryan

This study analyzes the effect of Internal Revenue Code section 162(m) on the compensation package of those chief executive officers (CEOs) hired after the imposition of this code section. Research documents that CEO compensation has increased dramatically since the imposition of section 162(m); yet, this research has not distinguished between the effects on the compensation of CEOs already in place when section 162(m) was imposed from those CEOs hired post-162(m) imposition. We focus our analysis on the compensation of CEOs hired after the imposition of section 162(m), because when firms hire a new CEO, they have a better opportunity to redesign the executive pay package. Consequently, we posit that section 162(m) will have its greatest effect when the affected companies change CEOs. Our analysis provides evidence that the increase in salary normally associated with the hiring of a new CEO has been mitigated and there has been an increase in the sensitivity of firm performance to bonus pay for CEOs appointed after 1994 in affected firms.


1992 ◽  
Vol 6 (4) ◽  
pp. 495-501 ◽  
Author(s):  
Mark A. Wilson ◽  
Thomas I. Chacko ◽  
Charles B. Shrader ◽  
Ellen Mullen

2008 ◽  
Vol 16 (5) ◽  
pp. 606-623 ◽  
Author(s):  
Angelo A. Unite ◽  
Michael J. Sullivan ◽  
Jeffrey Brookman ◽  
Mary Anne Majadillas ◽  
Angelo Taningco

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