Ceo Directors , Executive Incentives , and Corporate Strategic Initiatives

  title={Ceo Directors , Executive Incentives , and Corporate Strategic Initiatives},
  author={Olubunmi Faleye},
  • Olubunmi Faleye
  • Published 2011
I study how directors who are chief executive officers (CEOs) of other firms affect board effectiveness. I find that CEOs are paid more and their compensation is less sensitive to firm performance when other CEOs serve as directors. This is not an employment risk premium because CEO directors are not associated with higher turnover-performance sensitivity. Also, CEO directors have no effect on corporate innovation but are associated with higher acquisition returns, especially for complex deals… CONTINUE READING

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