CEO pay cuts and forced turnover: Their causes and consequences

• Main Authors: Gao, Huasheng, Harford, Jarrad, Li, Kai
• 其他作者: Nanyang Business School
• 格式: Article
• 語言: English
• 出版: 2013
• 主題: DRNTU::Business::Finance::Corporate finance
• 在線閱讀: https://hdl.handle.net/10356/107244; http://hdl.handle.net/10220/18162
• 機構: Nanyang Technological University

We study large discrete decreases in CEO pay and compare them to CEO forced turnover. The determinants are similar, as are the performance improvements after the action. After the pay cut, the CEO pay-for-performance sensitivity is abnormally high, such that the CEO can restore his pay level by reve...