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Executive Compensation, Corporate Governance, and Say on Pay

Author

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  • Ferri, Fabrizio
  • Göx, Robert

Abstract

This monograph explores the relation between corporate governance and executive compensation and evaluates the conditions under which shareholders can bene.t from the right to interfere with the pay setting process by voting on the compensation proposed by the board of directors (Say on Pay). The first part of the monograph lays out the theoretical framework. The second part provides an overview of the origins and country-specific differences in Say on Pay regulation and a detailed summary and evaluation of the empirical literature on the subject.

Suggested Citation

  • Ferri, Fabrizio & Göx, Robert, 2018. "Executive Compensation, Corporate Governance, and Say on Pay," Foundations and Trends(R) in Accounting, now publishers, vol. 12(1), pages 1-103, April.
    • Handle: RePEc:now:fntacc:1400000043
    DOI: 10.1561/1400000043
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    References listed on IDEAS

    as
    1. Jean Tirole, 2006. "The Theory of Corporate Finance," Post-Print hal-00173191, HAL.
    2. Thomas, Randall S. & Cotter, James F., 2007. "Shareholder proposals in the new millennium: Shareholder support, board response, and market reaction," Journal of Corporate Finance, Elsevier, vol. 13(2-3), pages 368-391, June.
    3. Monem, Reza & Ng, Chew, 2013. "Australia’s ‘two-strikes’ rule and the pay-performance link: Are shareholders judicious?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 9(2), pages 237-254.
    4. Kevin J. Murphy, 2012. "The Politics of Pay: A Legislative History of Executive Compensation," Chapters, in: Research Handbook on Executive Pay, chapter 1, Edward Elgar Publishing.
    5. Powell, Daniel & Rapp, Marc Steffen, 2015. "Non-mandatory say on pay votes and AGM participation: Evidence from Germany," SAFE Working Paper Series 107, Leibniz Institute for Financial Research SAFE.
    6. Sappington, David, 1983. "Limited liability contracts between principal and agent," Journal of Economic Theory, Elsevier, vol. 29(1), pages 1-21, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Dai, Na & Nahata, Rajarishi & Brauner, Aaron, 2022. "Does individualism matter for hedge funds? A cross-country examination," Journal of Corporate Finance, Elsevier, vol. 72(C).
    2. Shi, Lina & Gong, Stephen & Wang, Xingang, 2021. "Social network, corporate governance, and rent extraction in CEO compensation: Evidence from spatial econometric models," The British Accounting Review, Elsevier, vol. 53(4).
    3. Göx, Robert F. & Hemmer, Thomas, 2020. "On the relation between managerial power and CEO pay," Journal of Accounting and Economics, Elsevier, vol. 69(2).

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    More about this item

    Keywords

    Corporate governance; Managerial behavior; Stakeholders; Accounting research;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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