Shareholders’ Say on Pay: Does It Create Value?

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  1. Poor
  2. Satisfactory
  3. Good
  4. Very Good
  5. Excellent

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CFA Digest
August 2011 | Vol. 41 | No. 3 | 3 pages
Source: CFA Institute
Jie Cai Ralph A. Walkling
Thomas M. Arnold, CFA (Reviewer)

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Abstract

Since 2003, the U.S. SEC has required shareholder approval only of equity-based compensation. In 2007, the U.S. House of Representatives passed the say-on-pay bill, which would give shareholders an annual advisory vote on all executive pay. The market reaction was favorable for companies with “overpaid” CEOs and for companies with CEOs who do not have high equity ownership.

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Topics
Financial Statement Analysis
    :
  • Analysis of Pensions, Stock Compensation, and Other Employee Benefits
|
Portfolio Management
    :
  • Execution of Portfolio Decisions (Trading)
  • ·
  • Environmental, Social, and Governance (ESG) Investing and Faith-Based Finance
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