What happens to CEO compensation following turnover and succession?
Author
Abstract
Suggested Citation
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Naveen, Lalitha, 2006. "Organizational Complexity and Succession Planning," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 41(3), pages 661-683, September.
- Smith, Clifford Jr. & Watts, Ross L., 1992.
"The investment opportunity set and corporate financing, dividend, and compensation policies,"
Journal of Financial Economics, Elsevier, vol. 32(3), pages 263-292, December.
- Smith, C.W. & Watts, R.L., 1992. "The Investment Oppotunity set and Corporate Financing, Dividend and Compensation Policies," Papers 92-02, Rochester, Business - Financial Research and Policy Studies.
- Vafeas, Nikos, 1999. "Board meeting frequency and firm performance," Journal of Financial Economics, Elsevier, vol. 53(1), pages 113-142, July.
- McConaughy, Daniel L. & Walker, Michael C. & Henderson, Glenn Jr. & Mishra, Chandra S., 1998. "Founding family controlled firms: Efficiency and value," Review of Financial Economics, Elsevier, vol. 7(1), pages 1-19.
- Mark R. Huson & Robert Parrino & Laura T. Starks, 2001. "Internal Monitoring Mechanisms and CEO Turnover: A Long‐Term Perspective," Journal of Finance, American Finance Association, vol. 56(6), pages 2265-2297, December.
- Yermack, David, 1996. "Higher market valuation of companies with a small board of directors," Journal of Financial Economics, Elsevier, vol. 40(2), pages 185-211, February.
- Murphy, Kevin J., 1985. "Corporate performance and managerial remuneration : An empirical analysis," Journal of Accounting and Economics, Elsevier, vol. 7(1-3), pages 11-42, April.
- Fee, C. Edward & Hadlock, Charles J., 2004. "Management turnover across the corporate hierarchy," Journal of Accounting and Economics, Elsevier, vol. 37(1), pages 3-38, February.
- Weisbach, Michael S., 1988. "Outside directors and CEO turnover," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 431-460, January.
- Smith, Brian F. & Amoako-Adu, Ben, 1999. "Management succession and financial performance of family controlled firms," Journal of Corporate Finance, Elsevier, vol. 5(4), pages 341-368, December.
- Yermack, David, 1995. "Do corporations award CEO stock options effectively?," Journal of Financial Economics, Elsevier, vol. 39(2-3), pages 237-269.
- Yermack, David, 2006.
"Golden handshakes: Separation pay for retired and dismissed CEOs,"
Journal of Accounting and Economics, Elsevier, vol. 41(3), pages 237-256, September.
- Yermack, David, 2006. "Golden Handshakes: Separation Pay for Retired and Dismissed CEOs," SIFR Research Report Series 41, Institute for Financial Research.
- Richard A. DeFusco & Thomas S. Zorn & Robert R. Johnson, 1991. "The Association Between Executive Stock Option Plan Changes and Managerial Decision Making," Financial Management, Financial Management Association, vol. 20(1), Spring.
- Wei Shen & Albert A. Cannella,, 2003. "Will succession planning increase shareholder wealth? evidence from investor reactions to relay CEO successions," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 191-198, February.
- Lucian Bebchuk, 2005.
"The Growth of Executive Pay,"
Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(2), pages 283-303, Summer.
- Lucian Bebchuk & Yaniv Grinstein, 2005. "The Growth of Executive Pay," NBER Working Papers 11443, National Bureau of Economic Research, Inc.
- Bengt Holmstrom, 1979.
"Moral Hazard and Observability,"
Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 74-91, Spring.
- Bengt Holmstrom, 1997. "Moral Hazard and Observability," Levine's Working Paper Archive 1205, David K. Levine.
- C. Edward Fee, 2003. "Raids, Rewards, and Reputations in the Market for Managerial Talent," The Review of Financial Studies, Society for Financial Studies, vol. 16(4), pages 1315-1357.
- Parrino, Robert, 1997. "CEO turnover and outside succession A cross-sectional analysis," Journal of Financial Economics, Elsevier, vol. 46(2), pages 165-197, November.
- Weisbach, Michael S., 1995. "CEO turnover and the firm's investment decisions," Journal of Financial Economics, Elsevier, vol. 37(2), pages 159-188, February.
- Agrawal, Anup & Knoeber, Charles R. & Tsoulouhas, Theofanis, 2006.
"Are outsiders handicapped in CEO successions?,"
Journal of Corporate Finance, Elsevier, vol. 12(3), pages 619-644, June.
- Anup Agrawal & Charles R. Knoeber & Theofanis Tsoulouhas, "undated". "Are Outsiders Handicapped in CEO Successions?," Working Paper Series 003, North Carolina State University, Department of Economics, revised Apr 2004.
- Rowe, Wei Wang & Davidson, Wallace N, III, 2000. "Fund Manager Succession in Closed-End Mutual Funds," The Financial Review, Eastern Finance Association, vol. 35(3), pages 53-78, August.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- Baysinger, Barry D & Butler, Henry N, 1985. "The Role of Corporate Law in the Theory of the Firm," Journal of Law and Economics, University of Chicago Press, vol. 28(1), pages 179-191, April.
- Donald C. Hambrick & Sydney Finkelstein, 1995. "The effects of ownership structure on conditions at the top: The case of CEO pay raises," Strategic Management Journal, Wiley Blackwell, vol. 16(3), pages 175-193.
- HOLMSTROM, Bengt, 1979. "Moral hazard and observability," LIDAM Reprints CORE 379, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Yermack, David, 1997.
"Good Timing: CEO Stock Option Awards and Company News Announcements,"
Journal of Finance, American Finance Association, vol. 52(2), pages 449-476, June.
- David Yermack, 1996. "Good Timing: CEO Stock Option Awards and Company News Announcements," New York University, Leonard N. Stern School Finance Department Working Paper Seires 96-41, New York University, Leonard N. Stern School of Business-.
- Mehran, Hamid, 1995. "Executive compensation structure, ownership, and firm performance," Journal of Financial Economics, Elsevier, vol. 38(2), pages 163-184, June.
- Brickley, James A. & Coles, Jeffrey L. & Jarrell, Gregg, 1997. "Leadership structure: Separating the CEO and Chairman of the Board," Journal of Corporate Finance, Elsevier, vol. 3(3), pages 189-220, June.
- Dan L. Worrell & Carol Nemec & Wallace N. Davidson Iii, 1997. "One Hat Too Many: Key Executive Plurality And Shareholder Wealth," Strategic Management Journal, Wiley Blackwell, vol. 18(6), pages 499-507, June.
- Wallace Davidson & Carol Nemec & Dan Worrell & Jun Lin, 2002. "Industrial Origin of CEOs in Outside Succession: Board Preference and Stockholder Reaction," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 6(4), pages 295-321, December.
- Sridharan, Uma V, 1996. "CEO Influence and Executive Compensation," The Financial Review, Eastern Finance Association, vol. 31(1), pages 51-66, February.
- Chung, Kee H. & Pruitt, Stephen W., 1996. "Executive ownership, corporate value, and executive compensation: A unifying framework," Journal of Banking & Finance, Elsevier, vol. 20(7), pages 1135-1159, August.
- Gaver, Jennifer J. & Gaver, Kenneth M., 1993. "Additional evidence on the association between the investment opportunity set and corporate financing, dividend, and compensation policies," Journal of Accounting and Economics, Elsevier, vol. 16(1-3), pages 125-160, April.
- Eli Ofek & David Yermack, 2000. "Taking Stock: Equity‐Based Compensation and the Evolution of Managerial Ownership," Journal of Finance, American Finance Association, vol. 55(3), pages 1367-1384, June.
- Core, John E. & Holthausen, Robert W. & Larcker, David F., 1999. "Corporate governance, chief executive officer compensation, and firm performance," Journal of Financial Economics, Elsevier, vol. 51(3), pages 371-406, March.
- Jensen, Michael C & Murphy, Kevin J, 1990.
"Performance Pay and Top-Management Incentives,"
Journal of Political Economy, University of Chicago Press, vol. 98(2), pages 225-264, April.
- Jensen, M.C. & Murphy, K.J., 1988. "Performance Pay And Top Management Incentives," Papers 88-04, Rochester, Business - Managerial Economics Research Center.
- Xie, Biao & Davidson, Wallace III & DaDalt, Peter J., 2003. "Earnings management and corporate governance: the role of the board and the audit committee," Journal of Corporate Finance, Elsevier, vol. 9(3), pages 295-316, June.
- Barber, Brad M. & Lyon, John D., 1996. "Detecting abnormal operating performance: The empirical power and specification of test statistics," Journal of Financial Economics, Elsevier, vol. 41(3), pages 359-399, July.
- Benjamin E. Hermalin, 2005. "Trends in Corporate Governance," Journal of Finance, American Finance Association, vol. 60(5), pages 2351-2384, October.
- Morgan, Angela G. & Poulsen, Annette B., 2001. "Linking pay to performance--compensation proposals in the S&P 500," Journal of Financial Economics, Elsevier, vol. 62(3), pages 489-523, December.
- Farrell, Kathleen A & Whidbee, David A, 2000. "The Consequences of Forced CEO Succession for Outside Directors," The Journal of Business, University of Chicago Press, vol. 73(4), pages 597-627, October.
- Harry A. Newman & Haim A. Mozes, 1999. "Does the Composition of the Compensation Committee Influence CEO Compensation Practices?," Financial Management, Financial Management Association, vol. 28(3), Fall.
- Toyne, Michael F. & Millar, James A. & Dixon, Bruce L., 2000. "The relation between CEO control and the risk of CEO compensation," Journal of Corporate Finance, Elsevier, vol. 6(3), pages 291-306, September.
- Bruce K. Behn & Richard A. Riley & Ya‐wen Yang, 2005. "The Value of an Heir Apparent in Succession Planning," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(2), pages 168-177, March.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Taekjin Shin & Jihae You, 2017. "Pay for Talk: How the Use of Shareholder-Value Language Affects CEO Compensation," Journal of Management Studies, Wiley Blackwell, vol. 54(1), pages 88-117, January.
- Joel Rudin & Jooh Lee, 2021. "The Impact of Corporate Reputation Ratings on CEO Compensation Under Diverse Economic Conditions," Corporate Reputation Review, Palgrave Macmillan, vol. 24(3), pages 117-127, August.
- Wang, Hongxia & Davidson III, Wallace N. & Wang, Xiaoxin, 2010. "The Sarbanes-Oxley Act and CEO tenure, turnover, and risk aversion," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(3), pages 367-376, August.
- Brockman, Paul & Lee, Hye Seung (Grace) & Salas, Jesus M., 2016. "Determinants of CEO compensation: Generalist–specialist versus insider–outsider attributes," Journal of Corporate Finance, Elsevier, vol. 39(C), pages 53-77.
- Joel Rudin & Jooh Lee, 0. "The Impact of Corporate Reputation Ratings on CEO Compensation Under Diverse Economic Conditions," Corporate Reputation Review, Palgrave Macmillan, vol. 0, pages 1-11.
- Taekjin Shin, 2012. "CEO Compensation and Shareholder Value Orientation Among Large US Firms," The Economic and Social Review, Economic and Social Studies, vol. 43(4), pages 535-559.
- Angelica Gonzalez & Paul André, 2014. "Board Effectiveness and Short Termism," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(1-2), pages 185-209, January.
- Eahab Elsaid & Wallace Davidson & Xiaoxin Wang, 2011. "CEO successor compensation: outside versus inside successions," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(2), pages 187-205, May.
- Elsaid, Eahab & Davidson III, Wallace N. & Benson, Bradley W., 2009. "CEO compensation structure following succession: Evidence of optimal incentives with career concerns," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(4), pages 1389-1409, November.
- Jalal, Abu M. & Prezas, Alexandros P., 2012. "Outsider CEO succession and firm performance," Journal of Economics and Business, Elsevier, vol. 64(6), pages 399-426.
- Katarzyna Cieślak, 2018. "Agency conflicts, executive compensation regulations and CEO pay-performance sensitivity: evidence from Sweden," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(3), pages 535-563, September.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Carola Frydman & Dirk Jenter, 2010.
"CEO Compensation,"
Annual Review of Financial Economics, Annual Reviews, vol. 2(1), pages 75-102, December.
- Carola Frydman & Dirk Jenter, 2010. "CEO Compensation," CESifo Working Paper Series 3277, CESifo.
- Carola Frydman & Dirk Jenter, 2010. "CEO Compensation," NBER Working Papers 16585, National Bureau of Economic Research, Inc.
- Frydman, Carola & Jenter, Dirk, 2010. "CEO Compensation," Research Papers 2069, Stanford University, Graduate School of Business.
- Elsaid, Eahab & Davidson III, Wallace N. & Benson, Bradley W., 2009. "CEO compensation structure following succession: Evidence of optimal incentives with career concerns," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(4), pages 1389-1409, November.
- Bushman, Robert M. & Smith, Abbie J., 2001. "Financial accounting information and corporate governance," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 237-333, December.
- Benson, Bradley W. & Chen, Yu & James, Hui L. & Park, Jung Chul, 2020. "So far away from me: Firm location and the managerial ownership effect on firm value," Journal of Corporate Finance, Elsevier, vol. 64(C).
- Balsam, Steven & Miharjo, Setiyono, 2007. "The effect of equity compensation on voluntary executive turnover," Journal of Accounting and Economics, Elsevier, vol. 43(1), pages 95-119, March.
- David Blackwell & Donna Dudney & Kathleen Farrell, 2007. "Changes in CEO compensation structure and the impact on firm performance following CEO turnover," Review of Quantitative Finance and Accounting, Springer, vol. 29(3), pages 315-338, October.
- Sun, Jerry & Cahan, Steven F. & Emanuel, David, 2009. "Compensation committee governance quality, chief executive officer stock option grants, and future firm performance," Journal of Banking & Finance, Elsevier, vol. 33(8), pages 1507-1519, August.
- repec:eee:labchp:v:3:y:1999:i:pb:p:2485-2563 is not listed on IDEAS
- Renee B. Adams & Benjamin E. Hermalin & Michael S. Weisbach, 2010.
"The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey,"
Journal of Economic Literature, American Economic Association, vol. 48(1), pages 58-107, March.
- Renée Adams & Benjamin E. Hermalin & Michael S. Weisbach, 2008. "The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey," NBER Working Papers 14486, National Bureau of Economic Research, Inc.
- Adams, Renee & Hermalin, Benjamin E. & Weisbach, Michael S., 2009. "The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey," Working Paper Series 2008-21, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
- Yaowen Shan & Terry Walter, 2016. "Towards a Set of Design Principles for Executive Compensation Contracts," Abacus, Accounting Foundation, University of Sydney, vol. 52(4), pages 619-684, December.
- Ji, Jiao & Talavera, Oleksandr & Yin, Shuxing, 2016. "CEO Dismissal, Compensation and Topics of Board Meetings: The Case of China," MPRA Paper 70232, University Library of Munich, Germany.
- Renneboog, L.D.R. & Trojanowski, G., 2002.
"The Managerial Labor Market and the Governance Role of Shareholder Control Structures in the UK,"
Discussion Paper
2002-68, Tilburg University, Center for Economic Research.
- Renneboog, L.D.R. & Trojanowski, G., 2003. "The managerial labor market and the governance role of shareholder control structures in the UK," Other publications TiSEM a30fa565-3ce7-4bc3-b1c6-f, Tilburg University, School of Economics and Management.
- Renneboog, L.D.R. & Trojanowski, G., 2002. "The Managerial Labor Market and the Governance Role of Shareholder Control Structures in the UK," Other publications TiSEM aee04553-20a7-475a-96e1-7, Tilburg University, School of Economics and Management.
- Renneboog, L.D.R. & Trojanowski, G., 2003. "The managerial labor market and the governance role of shareholder control structures in the UK," Discussion Paper 2003-013, Tilburg University, Tilburg Law and Economic Center.
- Mobbs, Shawn & Raheja, Charu G., 2012. "Internal managerial promotions: Insider incentives and CEO succession," Journal of Corporate Finance, Elsevier, vol. 18(5), pages 1337-1353.
- Ertugrul, Mine & Krishnan, Karthik, 2011. "Can CEO dismissals be proactive?," Journal of Corporate Finance, Elsevier, vol. 17(1), pages 134-151, February.
- Conyon, Martin J. & He, Lerong, 2011. "Executive compensation and corporate governance in China," Journal of Corporate Finance, Elsevier, vol. 17(4), pages 1158-1175, September.
- Ryan, Harley Jr. & Wiggins, Roy III, 2001. "The influence of firm- and manager-specific characteristics on the structure of executive compensation," Journal of Corporate Finance, Elsevier, vol. 7(2), pages 101-123, June.
- Sautner, Zacharias & Weber, Martin, 2005.
"Corporate governance and the design of stock option programs,"
Papers
05-32, Sonderforschungsbreich 504.
- Sautner, Zacharias & Weber, Martin, 2005. "Corporate Governance and the Design of Stock Option Programs," Sonderforschungsbereich 504 Publications 05-32, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Chen, Jie & Song, Wei & Goergen, Marc, 2019.
"Passing the dividend baton: The impact of dividend policy on new CEOs' initial compensation,"
Journal of Corporate Finance, Elsevier, vol. 56(C), pages 458-481.
- Jie Chen & Wei Song & Marc Goergen, 2018. "Passing the dividend baton: The impact of dividend policy on new CEOs' initial compensation," Working Papers 2018-18, Swansea University, School of Management.
- Baber, William R. & Kang, Sok-Hyon & Kumar, Krishna R., 1998. "Accounting earnings and executive compensation:: The role of earnings persistence," Journal of Accounting and Economics, Elsevier, vol. 25(2), pages 169-193, May.
- Eckbo, B. Espen & Thorburn, Karin S. & Wang, Wei, 2016.
"How costly is corporate bankruptcy for the CEO?,"
Journal of Financial Economics, Elsevier, vol. 121(1), pages 210-229.
- Eckbo, B Espen & Thorburn, Karin S & Wang, Wei, 2015. "How costly is corporate bankruptcy for the CEO?," CEPR Discussion Papers 10985, C.E.P.R. Discussion Papers.
- Chongwoo Choe & Gloria Tian & Xiangkang Yin, 2008.
"Managerial Power, Stock-Based Compensation, And Firm Performance: Theory And Evidence,"
Monash Economics Working Papers
21/08, Monash University, Department of Economics.
- Choe, Chongwoo & Tian, Gloria & Yin, Xiangkang, 2009. "Managerial Power, Stock-Based Compensation, and Firm Performance: Theory and Evidence," MPRA Paper 13449, University Library of Munich, Germany.
More about this item
Keywords
CEO turnover CEO succession Compensation Corporate governance;Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:quaeco:v:49:y:2009:i:2:p:424-447. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620167 .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.