Remuneration, Retention, and Reputation Incentives for Outside Directors

  title={Remuneration, Retention, and Reputation Incentives for Outside Directors},
  author={D. Yermack},
  journal={Organizations & Markets eJournal},
  • D. Yermack
  • Published 2002
  • Economics, Business
  • Organizations & Markets eJournal
  • I study incentives received by outside directors in Fortune 500 firms from compensation, replacement, and the opportunity to obtain other directorships. Previous research has only shown these relations to apply under limited circumstances such as financial distress. Together these incentive mechanisms provide directors with wealth increases of approximately 11 cents per $1,000 rise in firm value. Although smaller than the performance sensitivities of CEOs, outside directors' incentives imply a… CONTINUE READING
    650 Citations
    Backdating and Directors Incentives : Greed or Reputation ?
    Independent Director Incentives: Where Do Talented Directors Spend Their Limited Time and Energy?
    • 243
    • Highly Influenced
    • PDF
    Board Compensation Practices and Agency Costs of Debt
    • 77
    • Highly Influenced
    • PDF


    The Consequences of Forced CEO Succession for Outside Directors
    • 159
    Performance Pay and Top Management Incentives
    • 5,611
    • PDF
    Incentive Compensation for Outside Directors and CEO Turnover
    • 175
    • Highly Influential
    Exit, Voice, and the Role of Corporate Directors: Evidence From Acquisition Performance
    • 89
    • PDF
    Takeover bids and target directors' incentives: the impact of a bid on directors' wealth and board seats
    • 232
    • Highly Influential
    Factors affecting the number of outside directorships held by CEOs
    • 356