Block ownership and CEO compensation: does board gender diversity matter?

CEO Compensation and Board Oversight

In response to the corporate scandals in 2001-2002, the major U.S. exchanges came up with new regulations which are intended to enhance board oversight. We use this regulation event to shed light on the effect of board oversight on CEO compensation. We find that firms that were not complying with these regulations decreased their CEO compensation by between 20%-25% upon compliance, compared to ...

Board Committees , CEO Compensation , and Earnings Management ∗

We analyze the effect of committee formation on how corporate boards perform two main functions: setting CEO pay and overseeing the financial reporting process. The use of performance-based pay schemes induces the CEO to manipulate earnings, which leads to an increased need for board oversight. If the whole board is responsible for both functions, it is inclined to provide the CEO with a compen...

Board Compensation and Risk-Taking: The Moderating Role of CEO Duality (Evidence from Banking Industry)

  The purpose of this paper is to explore relationship between board compensation and risk taking with regard to CEO duality in the banking industry. Using a panel data regression model, with regard to optimal contracting and managerial power theory, we examined the data to determine the relationship between board compensation and risk taking of twenty one banks, for the period 2012 to 2018. R...

Keeping the Board in the Dark: CEO Compensation and Entrenchment∗

The CEO’s control over information in the boardroom limits the board’s ability to monitor the CEO. We examine how CEOs’ incentives to hide negative information from the board depend on their compensation structure, and how the board can structure CEO compensation optimally to mitigate the problem. The optimal compensation package consists of options and severance pay. Option pay forces the CEO ...

Does Nonprofit Ownership Matter?