|
|
|
|
||||
|
||||
The Role of Defined Benefit Pension Plans in Executive CompensationBrian D. CadmanUniversity of Utah - David Eccles School of Business Linda VincentNorthwestern University August 1, 2011 Abstract: Although defined benefit pension plans constitute a significant portion of both annual compensation and firm-related wealth for many CEOs, prior studies of CEO compensation contracts often exclude these plans. Taking advantage of recently increased disclosure requirements, we analyze the role of defined benefit pension plans in these contracts. We find that firms with CEO defined benefit pension plans grant annual compensation that is larger than predicted by economic determinants, suggesting that CEO pension benefits are in addition to other forms of compensation. We also find that more powerful CEOs receive higher total pay and that the annual pension benefit is not sensitive to firm performance. Overall our results suggest that CEO DB pension plans serve as low-risk complements to more risky forms of CEO compensation.
Number of Pages in PDF File: 50 Keywords: Executive Compensation, Defined Benefit Pension Plans, Pay-Performance Sensitivity, CEO Power, Proxy Disclosure JEL Classification: G31, G32, G34 working papers seriesDate posted: March 14, 2011 ; Last revised: August 11, 2011Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo3 in 0.750 seconds
