The Role of Deferred Pay in Retaining Managerial Talent

• Main Authors: Gopalan, Radhakrishnan, HUANG, Sheng, Maharjan, Johan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Executive compensation; pay duration; talent retention; management turnover; Business; Corporate Finance; Human Resources Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4567; https://ink.library.smu.edu.sg/context/lkcsb_research/article/5566/viewcontent/RoleDefferedPayRetainingManagerialTalent_2014May.pdf
• Institution: Singapore Management University

We examine the role of deferred vesting of stock and option grants in reducing executive turnover. To the extent an executive forfeits all unvested stock and option grants if she leaves the firm, deferred vesting will increase the cost (to the executive) of early exit. Using pay Duration proposed in...