Institutional Investor Preferences and Executive Compensation (replaced by EBC DP 2012-002)

J.A. McCahery, Z. Sautner

Research output: Working paperDiscussion paperOther research output

22 Downloads (Pure)

Abstract

In this paper, we investigate the attitudes of institutional investors, such as hedge funds, insurance companies, mutual funds and pension funds, towards a key corporate governance mechanism, namely executive compensation. The purpose of this study is to document the preferences they have about both the level and structure of executive compensation. Our analysis takes a comparative approach as we ask investors to reveal their preferences both for firms in the US and in The Netherlands. Our analysis further sheds light on who should decide on executive pay, thereby contributing to the recent debate on shareholder involvement in executive pay. Finally, we examine their views on the most important and largest component of executive pay, executive stock options, and investigate what preferences they have when it comes to the design of such options.
Original languageEnglish
Place of PublicationTilburg
PublisherEBC
Volume2011-028
Publication statusPublished - 2011

Publication series

NameEBC Discussion Paper
Volume2011-028

Fingerprint

Institutional investors
Executive compensation
Executive pay
Corporate governance mechanisms
Investors
Pension funds
Executive stock options
Shareholders
Insurance companies
The Netherlands
Mutual funds
Hedge funds

Keywords

  • Executive Compensation
  • Institutional Investors
  • Corporate Governance

Cite this

McCahery, J. A., & Sautner, Z. (2011). Institutional Investor Preferences and Executive Compensation (replaced by EBC DP 2012-002). (EBC Discussion Paper; Vol. 2011-028). Tilburg: EBC.
@techreport{f2705034ee8c405690a15f084465ec3f,
title = "Institutional Investor Preferences and Executive Compensation (replaced by EBC DP 2012-002)",
abstract = "In this paper, we investigate the attitudes of institutional investors, such as hedge funds, insurance companies, mutual funds and pension funds, towards a key corporate governance mechanism, namely executive compensation. The purpose of this study is to document the preferences they have about both the level and structure of executive compensation. Our analysis takes a comparative approach as we ask investors to reveal their preferences both for firms in the US and in The Netherlands. Our analysis further sheds light on who should decide on executive pay, thereby contributing to the recent debate on shareholder involvement in executive pay. Finally, we examine their views on the most important and largest component of executive pay, executive stock options, and investigate what preferences they have when it comes to the design of such options.",
keywords = "Executive Compensation, Institutional Investors, Corporate Governance",
author = "J.A. McCahery and Z. Sautner",
note = "This is also CentER Discussion Paper 2011-103",
year = "2011",
language = "English",
volume = "2011-028",
series = "EBC Discussion Paper",
publisher = "EBC",
type = "WorkingPaper",
institution = "EBC",

}

McCahery, JA & Sautner, Z 2011 'Institutional Investor Preferences and Executive Compensation (replaced by EBC DP 2012-002)' EBC Discussion Paper, vol. 2011-028, EBC, Tilburg.

Institutional Investor Preferences and Executive Compensation (replaced by EBC DP 2012-002). / McCahery, J.A.; Sautner, Z.

Tilburg : EBC, 2011. (EBC Discussion Paper; Vol. 2011-028).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Institutional Investor Preferences and Executive Compensation (replaced by EBC DP 2012-002)

AU - McCahery, J.A.

AU - Sautner, Z.

N1 - This is also CentER Discussion Paper 2011-103

PY - 2011

Y1 - 2011

N2 - In this paper, we investigate the attitudes of institutional investors, such as hedge funds, insurance companies, mutual funds and pension funds, towards a key corporate governance mechanism, namely executive compensation. The purpose of this study is to document the preferences they have about both the level and structure of executive compensation. Our analysis takes a comparative approach as we ask investors to reveal their preferences both for firms in the US and in The Netherlands. Our analysis further sheds light on who should decide on executive pay, thereby contributing to the recent debate on shareholder involvement in executive pay. Finally, we examine their views on the most important and largest component of executive pay, executive stock options, and investigate what preferences they have when it comes to the design of such options.

AB - In this paper, we investigate the attitudes of institutional investors, such as hedge funds, insurance companies, mutual funds and pension funds, towards a key corporate governance mechanism, namely executive compensation. The purpose of this study is to document the preferences they have about both the level and structure of executive compensation. Our analysis takes a comparative approach as we ask investors to reveal their preferences both for firms in the US and in The Netherlands. Our analysis further sheds light on who should decide on executive pay, thereby contributing to the recent debate on shareholder involvement in executive pay. Finally, we examine their views on the most important and largest component of executive pay, executive stock options, and investigate what preferences they have when it comes to the design of such options.

KW - Executive Compensation

KW - Institutional Investors

KW - Corporate Governance

M3 - Discussion paper

VL - 2011-028

T3 - EBC Discussion Paper

BT - Institutional Investor Preferences and Executive Compensation (replaced by EBC DP 2012-002)

PB - EBC

CY - Tilburg

ER -