CEO optimism and incentive compensation

Abstract : I study the effect of chief executive officer (CEO) optimism on CEO compensation. Using data on compensation in US firms, I provide evidence that CEOs whose option exercise behavior and earnings forecasts are indicative of optimistic beliefs receive smaller stock option grants, fewer bonus payments, and less total compensation than their peers. These findings add to our understanding of the interplay between managerial biases and remuneration and show how sophisticated principals can take advantage of optimistic agents by appropriately adjusting their compensation contracts.
Type de document :
Article dans une revue
Journal of Financial Economics, Elsevier, 2014, 114 (2), pp.366-404. 〈10.1016/j.jfineco.2014.06.006〉
Liste complète des métadonnées

https://hal-hec.archives-ouvertes.fr/hal-01097589
Contributeur : Amaury Bouvet <>
Soumis le : vendredi 19 décembre 2014 - 23:42:45
Dernière modification le : jeudi 11 janvier 2018 - 06:19:32

Identifiants

Collections

Citation

Clemens A. Otto. CEO optimism and incentive compensation. Journal of Financial Economics, Elsevier, 2014, 114 (2), pp.366-404. 〈10.1016/j.jfineco.2014.06.006〉. 〈hal-01097589〉

Partager

Métriques

Consultations de la notice

127