CEO Compensation, Backdated Stock Options, and Compensation Committees

Authors

Steven A. Frankforter, Winthrop UniversityFollow
Bret Becton, University of Southern Mississippi

Abstract

CEO compensation in U. S. based companies has undergone considerable scrutiny in recent years. Among the common observations are that U. S. executives are highly paid relative to those of other countries and that the disparities in compensations are increasing over time. In this study, we investigate the effects that backdated stock options, compensation committee structure and process, and ownership factors have on levels or executive compensation. Combining agency and organizational theory perspectives, we find CEO compensation positively associated with the presence of backdated stock options, few large-block stockholders, and small compensation committees.

Volume

4

Issue

1

First Page

64

Last Page

69

DOI

10.58809/JPFV1941

Comments

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Rights

© Fort Hays State University

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Recommended Citation

Frankforter, Steven A. and Becton, Bret (2008) "CEO Compensation, Backdated Stock Options, and Compensation Committees," Journal of Business & Leadership: Research, Practice, and Teaching (2005-2012): Vol. 4: No. 1, Article 9.
DOI: 10.58809/JPFV1941
Available at: https://scholars.fhsu.edu/jbl/vol4/iss1/9