CEO Compensation, Strategy, and Firm Performance

CEOs are increasingly being granted options as part of their compensation packages. However, despite all of the research conducted on executive compensation, there has been little investigation into the impact of CEO stock option grants on firm performance. In addition, many previous studies have fo...

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Main Authors: Duong, Lien, Emanuel, D., Truong, T., van Dissen, J.
Other Authors: Balachandran, B.
Format: Conference Paper
Published: 2019
Online Access:http://hdl.handle.net/20.500.11937/75436
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author Duong, Lien
Emanuel, D.
Truong, T.
van Dissen, J.
author2 Balachandran, B.
author_facet Balachandran, B.
Duong, Lien
Emanuel, D.
Truong, T.
van Dissen, J.
author_sort Duong, Lien
building Curtin Institutional Repository
collection Online Access
description CEOs are increasingly being granted options as part of their compensation packages. However, despite all of the research conducted on executive compensation, there has been little investigation into the impact of CEO stock option grants on firm performance. In addition, many previous studies have found conflicting results on the impact of equity-based compensation on performance. Our study incorporates the competitive strategy adopted by the firm into its analysis. We document that a firm’s strategy impacts the level of stock options granted to the CEO. We also found that, after controlling for a firm’s competitive strategy, the relationship between CEO stock options and firm performance is stronger than when the sample is considered on a pooled basis.
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institution Curtin University Malaysia
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spelling curtin-20.500.11937-754362019-05-08T09:04:25Z CEO Compensation, Strategy, and Firm Performance Duong, Lien Emanuel, D. Truong, T. van Dissen, J. Balachandran, B. CEOs are increasingly being granted options as part of their compensation packages. However, despite all of the research conducted on executive compensation, there has been little investigation into the impact of CEO stock option grants on firm performance. In addition, many previous studies have found conflicting results on the impact of equity-based compensation on performance. Our study incorporates the competitive strategy adopted by the firm into its analysis. We document that a firm’s strategy impacts the level of stock options granted to the CEO. We also found that, after controlling for a firm’s competitive strategy, the relationship between CEO stock options and firm performance is stronger than when the sample is considered on a pooled basis. 2019 Conference Paper http://hdl.handle.net/20.500.11937/75436 fulltext
spellingShingle Duong, Lien
Emanuel, D.
Truong, T.
van Dissen, J.
CEO Compensation, Strategy, and Firm Performance
title CEO Compensation, Strategy, and Firm Performance
title_full CEO Compensation, Strategy, and Firm Performance
title_fullStr CEO Compensation, Strategy, and Firm Performance
title_full_unstemmed CEO Compensation, Strategy, and Firm Performance
title_short CEO Compensation, Strategy, and Firm Performance
title_sort ceo compensation, strategy, and firm performance
url http://hdl.handle.net/20.500.11937/75436