Welcome Firm Expansion and CEO Pay

  title={Welcome Firm Expansion and CEO Pay},
  author={Yaniv Grinstein},
We study the extent to which decisions to expand firm size are associated with increases in subsequent CEO compensation. Controlling for past stock performance, we find a positive correlation between CEO compensation and the CEO’s past decisions to increase firm size. This correlation is economically meaningful; for example, other things being equal, CEOs who in the preceding three years were in the top quartile in terms of expanding by increasing the number of shares outstanding receive… CONTINUE READING