We examine how firms exercise reporting discretion when preparing the performance graph required under the SEC's new compensation disclosure rules. Results from a sample of 449 Samp;P 500 firms, 31.4% of whom self-constructed a peer group, indicate that three sets of factors -- the firm's...

We examine whether the recent public outcry over executive compensation has had an impact on the level of executive compensation and/or the sensitivity of cash compensation to firm performance. Cross-sectional analyses for a sample of 186 firms show that post-1993 compensation levels have risen...