Contractual vs. Actual Separation Pay Following CEO Turnover

Published Online:https://doi.org/10.1287/mnsc.2014.1988

References

  • Agrawal A, Mandelker G (1990) Large shareholders and the monitoring of managers: The case of antitakeover charter amendments. J. Financial Quant. Anal. 25:143–161.CrossrefGoogle Scholar
  • Almazan A, Suarez J (2003) Entrenchment and severance pay in optimal structures. J. Finance 58:519–548.CrossrefGoogle Scholar
  • Almazan A, Hartzell J, Starks L (2005) Active institutional shareholders and managerial compensation. Financial Management 34:5–34.CrossrefGoogle Scholar
  • Bebchuk L, Weisbach M (2010) The state of corporate governance research. Rev. Financial Stud. 23:939–961.CrossrefGoogle Scholar
  • Brickley J, Bhagat S, Lease R (1985) The impact of long-range managerial compensation: Plans on shareholder wealth. J. Accounting Econom. 7:115–129.CrossrefGoogle Scholar
  • Byrd J, Hickman K (1992) Do outside directors monitor managers? Evidence from tender offer bids. J. Financial Econom. 32:195–221.CrossrefGoogle Scholar
  • Carleton W, Nelson J, Weisbach M (1998) The influence of institutions on corporate governance through private negotiations: Evidence from TIAA–CREF. J. Finance 53:1335–1362.CrossrefGoogle Scholar
  • Cotter J, Shivdasani A, Zenner M (1997) Do independent directors enhance target shareholder wealth during tender offers? J. Financial Econom. 43:195–218.CrossrefGoogle Scholar
  • Dalton D, Daily C, Kesner I (1993) Executive severance agreements: Benefit or burglary? Acad. Management Executive 7:69–79.Google Scholar
  • Fich E, Shivdasani A (2006) Are busy boards effective monitors? J. Finance 61:689–724.CrossrefGoogle Scholar
  • Frydman C, Jenter D (2010) CEO compensation. Annual Rev. Financial Econom. 2:75–102.CrossrefGoogle Scholar
  • Garmaise M (2011) Ties that truly bind: Non-competition agreements, executive compensation and firm investment. J. Law, Econom., Organ. 27:376–425.CrossrefGoogle Scholar
  • Garvey G, Milbourn T (2006) Asymmetric benchmarking in compensation: Executives are rewarded for good luck but not penalized for bad. J. Financial Econom. 82:197–225.CrossrefGoogle Scholar
  • Gillan S, Hartzell J, Parrino R (2009) Explicit vs. implicit contracts: Evidence from CEO employment agreements. J. Finance 64:1629–1655.CrossrefGoogle Scholar
  • Goldman D (2011) HP’s ousted CEO will take home $25 million. CNN Money (September 22), http://money.cnn.com/2011/09/22/technology/hp_leo_apotheker_severance/.Google Scholar
  • Gompers P, Ishii J, Metrick A (2003) Corporate governance and equity prices. Quart. J. Econom. 118:107–156.CrossrefGoogle Scholar
  • Griffith J (1999) CEO ownership and firm value. Managerial Decision Econom. 20:1–8.CrossrefGoogle Scholar
  • Hart O, Moore J (1988) Incomplete contracts and renegotiation. Econometrica 56:755–785.CrossrefGoogle Scholar
  • Huang P (2013) The causes and consequences of CEO severance agreements. Working paper, Tulane University, New Orleans.Google Scholar
  • Huson M, Parrino R, Starks L (2001) Internal monitoring mechanisms and CEO turnover: A long-term perspective. J. Finance 56:2265–2297.CrossrefGoogle Scholar
  • Hyde A (2011) Should noncompetes be enforced? New empirical evidence reveals the economic harm of non-compete covenants. Regulation 33:6–11.Google Scholar
  • Ju N, Leland H, Senbet LW (2014) Options, option repricing in managerial compensation: Their effects on corporate investment risk. J. Corporate Finance 29:628–643.CrossrefGoogle Scholar
  • Kavilanz PB (2007) Nardelli out at Home Depot. CNN Money (January 3), http://money.cnn.com/2007/01/03/news/companies/home_depot/.Google Scholar
  • Lambert R, Larcker D (1985) Golden parachutes, executive decision-making, and shareholder wealth. J. Accounting Econom. 7:179–203.CrossrefGoogle Scholar
  • Manso G (2011) Motivating innovation. J. Finance 66:1823–1869.CrossrefGoogle Scholar
  • Murphy KJ (1999) Executive compensation. Ashenfelter OC, Card D, eds. Handbook of Labor Economics, Vol. 3B (Elsevier Science, Amsterdam), 2485–2566.CrossrefGoogle Scholar
  • Parrino R (1997) CEO turnover and outside succession: A cross-sectional analysis. J. Financial Econom. 46:165–197.CrossrefGoogle Scholar
  • Perry T, Peyer U (2005) Board seat accumulation by executives: A shareholder’s perspective. J. Finance 60:2083–2123.CrossrefGoogle Scholar
  • Rau R, Xu J (2013) How do ex ante severance pay contracts fit into optimal executive incentive schemes? J. Accounting Res. 51:631–671.CrossrefGoogle Scholar
  • Rusticus TO (2006) Executive severance agreements. Working paper, Kellogg School of Management, Northwestern University, Evanston, IL.Google Scholar
  • Schwab S, Thomas R (2004) What do CEOs bargain for? An empirical study of key legal components of CEO contracts. Working paper, Vanderbilt University, Nashville, TN.CrossrefGoogle Scholar
  • Sundaram R, Yermack D (2007) Pay me later: Inside debt and its role in managerial compensation. J. Finance 62:1551–1588.CrossrefGoogle Scholar
  • Van Wesep ED, Wang S (2014) The prevention of excess managerial risk taking. J. Corporate Finance. 29:579–593.CrossrefGoogle Scholar
  • Weisbach M (1988) Outside directors and CEO turnover. J. Financial Econom. 20:431–460.CrossrefGoogle Scholar
  • Yermack D (2006a) Flights of fancy: Corporate jets, CEO perquisites, and inferior shareholder returns. J. Financial Econom. 80:211–242.CrossrefGoogle Scholar
  • Yermack D (2006b) Golden handshakes: Rewards for CEOs who leave. J. Accounting Econom. 41:237–256.CrossrefGoogle Scholar
  • Zhao J (2013) Entrenchment or incentive? CEO employment contracts and acquisition decisions. J. Corporate Finance 22:124–152.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.