search query: @author Wu, J.S. / total: 2
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| Author: | Leone, A.J. Wu, J.S. Zimmerman, J.L. |
| Title: | Asymmetric sensitivity of CEO cash compensation to stock returns |
| Journal: | Journal of Accounting & Economics
2006 : OCT, VOL. 42:1-2, p. 167-192 |
| Index terms: | management executive remuneration compensation pay performance appraisal contracts |
| Language: | eng |
| Abstract: | This paper documents that CEO cash compensation (here as: c-cmp.) is twice as sensitive to negative stock returns (here as: st-rts.) as it is to positive st-rts. Since st-rts. include both unrealized gains (u-gs.) and unrealized losses (u-ls.), c-cmp. is expected to be less sensitive to st-rts. when returns contain u-gs. (positive returns) than when returns contain u-ls. (negative returns). This is consistent with boards of directors exercising discretion to reduce costly ex-post settling up in c-cmp. paid to CEOs. |
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