search query: @indexterm BUSINESS ETHICS / total: 1509
reference: 137 / 1509
| Author: | Kanagaretnam, K. Lobo, G.J. Mohammad, E. |
| Title: | Are stock options grants to CEOs of stagnant firms fair and justified? |
| Journal: | Journal of Business Ethics
2009 : NOV II, VOL. 90:1, p. 137-155 |
| Index terms: | business ethics corporate governance chief executive officers executive remuneration management compensation stock options |
| Freeterms: | economic determinants pay-performance sensitivity |
| Language: | eng |
| Abstract: | Because of more recent studies show stock options grants forming the single largest component in executive compensation, this paper explores the relations of these grants to economic determinants and corporate governance for firms in the stagnant stage of their lifecycle. It is found that, on average, stock options grants make up a significant portion of annual chief executive officers' (CEO) compensation (26.4 percent) for stagnant firms. It is also found that economic (corporate governance) factors explain less (or more) of the cross-sectional variation in stock options grants for stagnant firms than for growth firms. In addition, documented is also lower pay-performance sensitivity and without improvement in future firm performance from past stock options grants to CEOs of stagnant firms. |
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