Executive Compensation and Board Governance in US Firms

By M. Conyon. 2014

130 citations recorded by the source corpus.

This paper investigates US executive compensation and governance. I find on average executive pay is positively correlated to firm performance and firm size. Executive pay contracts contain significant equity incentives. The use of restricted stock has become more important over time. Stock options remain an important part of executive pay. Compensation committees are generally independent and there is little evidence they result in ‘too high’ CEO pay. The Dodd-Frank Act changed the corporate governance landscape. Firms use compensation consultants that are generally engaged by the board and not management. ‘Say-on-Pay’ gave shareholders a non-binding mandatory vote on executive pay. Typically, stockholders endorse executive pay plans with very few resolutions failing.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/0fa84d588a1e6ba003bb47ccdb91cfc92c6e8182

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Citations in the corpus

An ill wind? Terrorist attacks and CEO compensation (2020, background): “executives receive higher compensation when the firm performs well (Conyon, 2014).”
Firm performance, corporate governance and executive compensation in Pakistan (2018, background): “The average board size in Pakistan is lower than the board size recently reported for China (mean 9.372 and median 9) and US (mean 9.54 and median 9) where state has the major stake in the firms or ownership is widely held (see, Conyon 2014; Huang and Wang 2015).”
Corporate governance and financial performance: The role of ownership and board structure (2018, background): “In contrast, Dalton et al. (1998) conclude that most studies provide scant evidence of the relationship between financial performance and board structure. Based on a sample of 20,620 observations from 131 studies, a meta-analysis by Dalton, Daily, Johnson, and Ellstrand (1999) suggests a positive co”