Remuneration, Retention, and Reputation Incentives for Outside Directors
NYU Stern School of Business
NYU Working Paper No. FIN-02-032
I study incentives received by outside directors in Fortune 500 firms from compensation, replacement, and the opportunity to obtain other directorships. Changes over time in the value of equity compensation create considerable variation in director pay. Board members of the most successful firms earn millions of dollars within their first five years, a marked change in the historical pattern of rewards for directors. I also find statistically significant evidence that outside directors replacement and total board seats held are associated generally with company performance. Previous research had only shown these relations to apply under extremecircumstances such as financial distress.
Number of Pages in PDF File: 40working papers series
Date posted: November 3, 2008
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo7 in 0.766 seconds