Remuneration, Retention, and Reputation Incentives for Outside Directors

@article{Yermack2002RemunerationRA,
  title={Remuneration, Retention, and Reputation Incentives for Outside Directors},
  author={D. Yermack},
  journal={Organizations & Markets eJournal},
  year={2002}
}
  • 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
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