Executive compensation based on asset values

This paper describes how credit default swaps could be employed to create performance based executive compensation portfolios that reflect the value of a firm's debt as well as equity; i.e. the total value of all a firm's assets. We define so-called Asset Value Unit (AVU) compensation portfolios that work both for executive- and non-executive pay schemes in financial as well as non-financial firms.

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Year of publication:	2012
Authors:	Bystrom, Hans
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 32.2012, 2, p. 1504-1508
Publisher:	AccessEcon
Subject:	executive pay \| executive compensation \| stock \| credit default swap

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Extent:	application/pdf
Type of publication:	Article
Classification:	G1 - General Financial Markets ; G3 - Corporate Finance and Governance
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011278562