Document Type

Thesis or dissertation

Date of this Version

5-2019

Advisor

Eric Orts

Abstract

This study provides unique evidence for the potential use of the implementation of anti-takeover provisions (ATPs) as an indication of managerial influence in compensation setting processes within publicly traded firms. While many firms utilize anti-takeover provisions to protect their ability to adhere to its corporate strategy and policy, the imposition of an anti-takeover provision distinctly predicts both a structural and aggregate change in the compensation packages of CEOs in S&P 500 firms. In the three years following a firm’s implementation of an anti-takeover provision, the compound annual growth rate (CAGR) of total executive compensation increases by 42% relative to the CAGR across all S&P 500 firms. Moreover, these altered compensation plans more heavily favor increasing levels of stock-based and bonus-based compensation than the average packages of S&P 500 CEOs. Thus, this study provides principal evidence of managerial influence in the compensation setting processes within by publicly traded firms.

Keywords

Executive compensation, managerial influence, anti-takeover provision, principal-agent problem, S&P 500, stock-based compensation, corporate governance

Additional Files

Elias Zenkich.xlsx (19717 kB)
Data tables

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Business Commons

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Date Posted: 13 November 2019

 

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