The Executive Turnover Risk Premium

CEO compensation has increased substantially over the past 15 years, but so has forcedturnover. Motivated by this observation, we investigate whether part of the developmentof CEO pay can be explained by a premium which compensates CEOs for increased job risk.We ¯nd that for the CEOs of the largest US corporations, a one percentage point increase inturnover risk is, on average, associated with about 4% more in terms of total compensation.[...]

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Year of publication:	2009-10-08
Authors:	Peters, Florian S. ; Wagner, Alexander F.
Institutions:	Institut für Schweizerisches Bankwesen <Zürich>
Subject:	Umsatz \| Risikoprämie \| Vollziehende Gewalt \| entrenchment \| Kompensation \| compensation

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I Theoretical Links between CEO Turnover and Pay
II Data
III Cross-sectoral and Time-series Relations between
CEO Turnover and Pay
A. Empirical Design
B. Determinants of Forced Turnover
C. Turnover Risk and CEO Pay
D. Robustness
IV Endogeneity
A. Instrumental Variables
B. Reverse Causation
C. Omitted Variable Bias
V Conclusion and Interpretation
References
Appendix

Persistent link: https://www.econbiz.de/10005868976