Wealth Shocks and Executive Compensation: Evidence from CEO Divorce

Neyland, Jordan

doi:10.2139/ssrn.2140668

SSRN Journal

2012

DOI: 10.2139/ssrn.2140668

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Wealth Shocks and Executive Compensation: Evidence from CEO Divorce

Jordan Neyland

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Cited by 3 publications

References 115 publications

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Managerial Performance Incentives and Firm Risk during Economic Expansions and Recessions*

Savaşer

Şişli‐Ciamarra

2016

Review of Finance

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We argue that the relationship between managerial pay-for-performance incentives and risk taking is pro-cyclical. We study the relationship between incentives provided by stock-based compensation and firm risk for US non-financial corporations over the two business cycles between 1992 and 2009. We show that a given level of pay-for-performance incentives results in significantly lower firm risk when the economy is in a downturn. The documented pro-cyclical relationship between incentives and risk taking is consistent with state-dependent risk aversion. Our findings contribute to the literature on the depressive effects of performance incentives on firm risk by documenting the importance of the interaction between performance incentives and risk aversion.

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Managerial Performance Incentives and Firm Risk during Economic Expansions and Recessions*

Savaşer

Şişli‐Ciamarra

2016

Review of Finance

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Managerial Performance Incentives and Firm Risk during Economic Expansions and Recessions

Savaşer

Ciamarra

2014

SSRN Journal

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Career Experience and Executive Performance: Evidence from Former Equity Research Analysts

et al. 2019

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This study examines CEOs and CFOs who have prior work experience as equity research analysts. Consistent with backgrounds in forecasting and valuation, we find these executives provide earnings guidance that is more accurate than that of other executives, and their M&A transactions generate significantly higher announcement returns. For available CEOs and CFOs, we examine their track records as research analysts with respect to forecasting accuracy and stock recommendation profitability. We find a positive association between a record of past forecasting accuracy and more accurate earnings guidance, as well as a positive association between past stock recommendation profitability and M&A announcement returns. Beyond these traits, we find these executives provide greater certainty in their answers to analysts during conference calls, especially when answering forward-looking questions. Finally, these executives' firms exhibit superior accounting and stock return performance. Overall, our evidence suggests that early career skill sets can shape top executive performance outcomes.

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Wealth Shocks and Executive Compensation: Evidence from CEO Divorce

Cited by 3 publications

References 115 publications

Managerial Performance Incentives and Firm Risk during Economic Expansions and Recessions*

Managerial Performance Incentives and Firm Risk during Economic Expansions and Recessions*

Managerial Performance Incentives and Firm Risk during Economic Expansions and Recessions

Career Experience and Executive Performance: Evidence from Former Equity Research Analysts

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