Benchmarking of Pay Components in CEO Compensation Design

Eighty-nine percent of S&P500 companies report benchmarking CEO pay components. Analyzing a panel of CEO compensation data entailing 1,251 S&P 1500 firms during 2007-2013, we find that: 1) total compensation benchmarking less effectively explains CEO compensation than does component-of-pay benchmarking; 2) the strength of compensation components’ adjustment to their benchmarks appears similar across the various components; the only exception is the salary that adjusts less pronouncedly to its benchmark, and 3) benchmarking is used not only regarding the level of compensation components but also regarding the weight of each component in total compensation. We discuss possible motivations for pay component benchmarking

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Year of publication:	[2021]
Authors:	Grinstein, Yaniv ; Lauterbach, Beni ; Yosef, Revital
Publisher:	[S.l.] : SSRN
Subject:	Benchmarking \| Managervergütung \| Executive compensation \| Führungskräfte \| Managers \| Vergütungssystem \| Compensation system \| Leistungsentgelt \| Performance pay \| Lohn \| Wages

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Extent:	1 Online-Ressource (77 p)
Series:	European Corporate Governance Institute – Finance Working Paper ; No. 768/2021
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 29, 2021 erstellt
Other identifiers:	10.2139/ssrn.3856026 [DOI]
Classification:	G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; G38 - Government Policy and Regulation ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc ; J33 - Compensation Packages; Payment Methods ; M12 - Personnel Management ; M52 - Compensation and Compensation Methods and Their Effects (stock options, fringe benefits, incentives, family support programs)
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013224725