Publication: Board reputation, CEO pay, camouflaged compensation
dc.affiliation.dpto | UC3M. Departamento de EconomĂa de la Empresa | es |
dc.contributor.author | Ruiz-VerdĂș, Pablo | |
dc.contributor.author | Singh, Ravi | |
dc.date.accessioned | 2011-12-07T12:08:53Z | |
dc.date.available | 2011-12-07T12:08:53Z | |
dc.date.issued | 2011-03-08 | |
dc.description.abstract | Reputational concerns are arguably the single most powerful incentive for board directors to act in the interest of shareholders. We propose a model to investigate the impact of boards' reputational concerns on the level and structure of executive compensation, the use of camou aged pay, and the relation between board independence and compensation decisions. We show that, in order to be perceived as independent, boards lower managers' pay, but may also pay managers in hidden ways or structure compensation ine ciently. Interestingly, independent boards, not manager-friendly boards, are more likely to make use of hidden compensation. We apply our model to study the costs and bene ts of greater pay transparency and of measures, such as say-on-pay initiatives, that increase boards' accountability to shareholders. | |
dc.description.sponsorship | Pablo Ruiz-Verd u gratefully acknowledges the nancial support of the Spanish Ministry of Science and Innovation for nancial support under grant ECO2009/08278. We thank seminar participants at the Swiss Finance Institute, the University of Texas at Austin, the European Financial Management Association Annual Conference (2010) and the XVIII Finance Forum for useful discussions and suggestions. | |
dc.format.mimetype | application/pdf | |
dc.identifier.uri | https://hdl.handle.net/10016/12720 | |
dc.language.iso | eng | |
dc.publisher | Social Science Research Network | |
dc.relation.ispartofseries | Working paper series | |
dc.relation.ispartofseries | March 8, 2011 | |
dc.relation.projectID | Gobierno de España. ECO2009-08278 | |
dc.rights | Atribución-NoComercial-SinDerivadas 3.0 España | |
dc.rights.accessRights | open access | |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/es/ | |
dc.subject.eciencia | Empresa | |
dc.subject.other | Executive compensation | |
dc.subject.other | Board of directors | |
dc.subject.other | Hidden pay | |
dc.subject.other | Board reputation | |
dc.subject.other | Board independence | |
dc.title | Board reputation, CEO pay, camouflaged compensation | |
dc.type | working paper | * |
dc.type.hasVersion | VoR | * |
dspace.entity.type | Publication |
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