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CEO Compensation after Harvester Director Departure
| Content Provider | Scilit |
|---|---|
| Author | Jarosiewicz, Victor |
| Copyright Year | 2017 |
| Description | Journal: SSRN Electronic Journal I examine the effect of post-IPO board member departure on CEO compensation. Theory predicts that a reduction in board monitoring should result in an increase in CEO pay. Using a novel dataset and empirical setting, I find that the effect is found only after the last ‘harvester director’ departs, who represents the interests of a Venture Capital or Private Equity fund that has backed the firm pre-IPO, and who has incentives to provide the strongest monitoring. Moreover, equity compensation does not increase, contrary to theory. This paper sheds light on important dynamics between board composition, monitoring and CEO compensation. |
| Related Links | https://digitalcommons.bryant.edu/cgi/viewcontent.cgi?article=1045&context=finjou https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3042780 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.3042780 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2017-10-01 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Ceo Compensation |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |