As they deal with a business landscape that is evolving constantly, rapidly, and unpredictably, executives all over the world are full of questions about change: How much? How fast? How sustainable? And sometimes just How? They can’t hope to answer those questions unless they understand their companies’ capacity for change—but they’ve lacked good tools for measuring that. To address thi…
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An analysis was conducted of performance pay and top-management incentives for over 2,000 chief executive officers (CEO) in 3 samples spanning 50 years. Estimates of the pay-performance relation, including pay, options, stockholdings, and dismissal, for CEOs indicate that CEO wealth changes $3.25 for every $1,000 change in shareholder wealth. While the incentives generated by stock ownership ar…
This paper summarizes the empirical and theoretical research on executive compensation and provides a comprehensive and up-to-date description of pay practices (and trends in pay practices) for chief executive officers (CEOs). Topics discussed include the level and structure of CEO pay (including detailed analyses of annual bonus plans, executive stock options, and option valuation), internatio…