Optimal incentive-based compensation contracts for CEOs: The moderating roles of age and tenure
Advances in Business Research
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Title |
Optimal incentive-based compensation contracts for CEOs: The moderating roles of age and tenure
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Creator |
Aaron, Joshua R.; Middle Tennessee State University
McMillan, Amy; East Carolina University Dunne, Timothy C.; Middle Tennessee State University |
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Subject |
Management; Finance
Executive compensation; Agency theory |
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Description |
This study examines the relationship between CEO compensation packages and firm performance. We suggest that CEO age and tenure moderate the relationship between the aforementioned variables. Our results indicate that younger and newly minted CEOs perform better with greater proportions of incentive-based compensation than their older and longer tenured counterparts. These findings suggest CEOs respond differently to different compensation packages. Therefore, firms should evaluate the characteristics of their CEOs prior to designing the compensation package.
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Publisher |
Tarleton State University and the University of Arkansas - Fort Smith
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Contributor |
—
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Date |
2016-02-08
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Articles Quantitative/Archival |
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Format |
application/pdf
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Identifier |
http://journals.sfu.ca/abr/index.php/abr/article/view/73
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Source |
Advances in Business Research; Vol 6, No 1 (2015); 46-64
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Language |
eng
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Relation |
http://journals.sfu.ca/abr/index.php/abr/article/view/73/98
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Rights |
Authors who publish with this journal agree to the following terms:Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
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