TY - UNPB
T1 - Institutional Investor Preferences and Executive Compensation (Revision of 2011-103)
AU - McCahery, J.A.
AU - Sautner, Z.
N1 - This is also EBC Discussion Paper 2012-002
Pagination: 23
PY - 2012
Y1 - 2012
N2 - 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. We 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 U.S. 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 - 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. We 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 U.S. 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 - 2012-004
T3 - CentER Discussion Paper
BT - Institutional Investor Preferences and Executive Compensation (Revision of 2011-103)
PB - Finance
CY - Tilburg
ER -