We examine the relation between non-executive option compensation and future firm performance. As broad-based plans have become increasingly prevalent in the compensation landscape, our findings may help managers and shareholders evaluate the potential benefits of providing more inclusive option...

We directly test the assertion that executive stock option repricing leads to increased management retention and/or improved future firm performance. Using a sample of 201 repricing events and a non-repricing control sample, we examine executive retention in the four years following repricing....

We hypothesize that golden parachutes are initiated when the agency cost of free cash flow is most severe. We examine examine the relationship between golden parachutes and investment levels in firms that have been acquired. Our results support three conclusions. First, target firms overinvest...

This paper investigates whether firms time the stock option repricing to coincide with favorable movements in the company's stock price. For a sample of 166 firms that repriced executive stock options during the period 1992 through 1997, we show that, in general, stock price rises sharply on the...