How do ‘busy’ and ‘overlap’ directors relate to CEO pay structure and incentives?

© 2017 AFAANZ We examine how CEO compensation is affected by the presence of busy and overlap directors. We find that CEOs at firms with more busy directors receive greater total pay, fixed salary and equity-linked pay and exhibit higher pay-performance (delta) and pay-risk (vega) sensitivities. Our...

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Main Authors: Pathan, Md Shams Tabrize, Wong, P.H., Benson, K.
Format: Journal Article
Language:English
Published: WILEY 2019
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/76638
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author Pathan, Md Shams Tabrize
Wong, P.H.
Benson, K.
author_facet Pathan, Md Shams Tabrize
Wong, P.H.
Benson, K.
author_sort Pathan, Md Shams Tabrize
building Curtin Institutional Repository
collection Online Access
description © 2017 AFAANZ We examine how CEO compensation is affected by the presence of busy and overlap directors. We find that CEOs at firms with more busy directors receive greater total pay, fixed salary and equity-linked pay and exhibit higher pay-performance (delta) and pay-risk (vega) sensitivities. Our results also suggest that CEOs at firms with more overlap directors take smaller total pay and equity-linked pay and reveal lower delta and vega. We further show that the impact of busy and overlap directors on CEO pay is more visible for firms with less complexity and low information acquisition cost.
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spelling curtin-20.500.11937-766382019-10-24T05:48:19Z How do ‘busy’ and ‘overlap’ directors relate to CEO pay structure and incentives? Pathan, Md Shams Tabrize Wong, P.H. Benson, K. Social Sciences Business, Finance Business & Economics CEO Incentives Busy directors Overlap directors EXECUTIVE-COMPENSATION MANAGERIAL INCENTIVES PROPENSITY SCORE BOARD STRUCTURE FIRM DETERMINANTS OWNERSHIP COMMITTEES BIAS © 2017 AFAANZ We examine how CEO compensation is affected by the presence of busy and overlap directors. We find that CEOs at firms with more busy directors receive greater total pay, fixed salary and equity-linked pay and exhibit higher pay-performance (delta) and pay-risk (vega) sensitivities. Our results also suggest that CEOs at firms with more overlap directors take smaller total pay and equity-linked pay and reveal lower delta and vega. We further show that the impact of busy and overlap directors on CEO pay is more visible for firms with less complexity and low information acquisition cost. 2019 Journal Article http://hdl.handle.net/20.500.11937/76638 10.1111/acfi.12272 English WILEY restricted
spellingShingle Social Sciences
Business, Finance
Business & Economics
CEO
Incentives
Busy directors
Overlap directors
EXECUTIVE-COMPENSATION
MANAGERIAL INCENTIVES
PROPENSITY SCORE
BOARD STRUCTURE
FIRM
DETERMINANTS
OWNERSHIP
COMMITTEES
BIAS
Pathan, Md Shams Tabrize
Wong, P.H.
Benson, K.
How do ‘busy’ and ‘overlap’ directors relate to CEO pay structure and incentives?
title How do ‘busy’ and ‘overlap’ directors relate to CEO pay structure and incentives?
title_full How do ‘busy’ and ‘overlap’ directors relate to CEO pay structure and incentives?
title_fullStr How do ‘busy’ and ‘overlap’ directors relate to CEO pay structure and incentives?
title_full_unstemmed How do ‘busy’ and ‘overlap’ directors relate to CEO pay structure and incentives?
title_short How do ‘busy’ and ‘overlap’ directors relate to CEO pay structure and incentives?
title_sort how do ‘busy’ and ‘overlap’ directors relate to ceo pay structure and incentives?
topic Social Sciences
Business, Finance
Business & Economics
CEO
Incentives
Busy directors
Overlap directors
EXECUTIVE-COMPENSATION
MANAGERIAL INCENTIVES
PROPENSITY SCORE
BOARD STRUCTURE
FIRM
DETERMINANTS
OWNERSHIP
COMMITTEES
BIAS
url http://hdl.handle.net/20.500.11937/76638