Accounting and equity-based compensation : on the influence and effectiveness of IFRS 2

Executive compensation is still at the forefront of not only academic research, but also policy initiatives, news stories, and nationwide discussions. Much of the intensity of the discussion has been caused by the steep increase in executive pay, especially over the 1990s when total realized CEO compensation almost quadrupled (Murphy 1999). Especially stock options have effected much of the escalation in executive pay (Hall & Liebman 1998) and ever since there has been a seemingly endless debate over the usefulness of equity-based instruments. The introduction of a new accounting standard, ...