Vollmer Fries Speaker Series/Economics and Finance Joint Seminar
| What | Seminar, Reception |
|---|---|
| When |
Mar 09, 2011
Mar 09, 2011
Mar 09, 2011 from 01:00 pm to 03:30 pm |
| Where | Pittsburgh Building 5216 |
| Contact Name | Jessica Nash |
| Contact Email | nashj2@rpi.edu |
| Contact Phone | 518.276.2637 |
Thomas Cooley '65
Paganelli Bull Professor of Economics and former Dean, NYU Stern School of Business
ABSTRACT: In this paper we describe the important features of executive compensation in the US from 1993 to 2008. Differently from most of the literature, we follow Antle and Smith (1985) in defining compensation as the year–on–year change in the portion of the executive’s wealth tied to the firm. Notable facts are that: the compensation distribution is highly skewed; each year, a sizeable fraction of chief executives lose money; the use of security grants has increased over time; the income accruing to CEOs from the sale of stock increased; regardless of the measure we adopt, compensation responds strongly to innovations in shareholder wealth; measured as dollar changes in compensation, incentives have strengthened over time, measured as percentage changes in wealth, they have not changed in any appreciable way.