The CEO Pay Slice

  title={The CEO Pay Slice},
  author={L. Bebchuk and M. Cremers and U. Peyer},
We investigate the relationship between the CEO Pay Slice (CPS) – the fraction of the aggregate compensation of the top-five executive team captured by the CEO – and the value, performance, and behavior of public firms. The CPS may reflect the relative importance of the CEO as well as the extent to which the CEO is able to extracts rents. We find that, controlling for all standard controls, CPS is negatively associated with firm value as measured by industryadjusted Tobin's Q. CPS also has a… CONTINUE READING
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