Abstract

http://ssrn.com/abstract=2335584
 
 

Citations (1)



 


 



The Determinants of Director Compensation


Viktar Fedaseyeu


Bocconi University - Department of Finance; Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research

James S. Linck


Southern Methodist University

Hannes F. Wagner


Bocconi University - Department of Finance; Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research

March 21, 2014


Abstract:     
While the role of outside directors has been studied extensively, relatively little is known about their compensation. We attempt to fill this gap by examining the determinants of outside director compensation using a dataset of over 56,000 board positions from 2006 to 2010. We show that compensation of outside directors varies significantly across board members, even within the same firm. We find that director compensation is explained by directors’ qualifications, experience, and effort, and do not find evidence that compensation depends on insider connections that are unrelated to a director’s duties. Results from an analysis of unexpected director departures suggest that shareholders value outside directors’ qualifications and effort. Overall, our results are consistent with the view that outside director compensation is determined in a competitive market.

Number of Pages in PDF File: 59

working papers series





Download This Paper

Date posted: October 7, 2013 ; Last revised: March 31, 2014

Suggested Citation

Fedaseyeu, Viktar and Linck, James S. and Wagner, Hannes F., The Determinants of Director Compensation (March 21, 2014). Available at SSRN: http://ssrn.com/abstract=2335584 or http://dx.doi.org/10.2139/ssrn.2335584

Contact Information

Viktar Fedaseyeu
Bocconi University - Department of Finance ( email )
Via Roentgen 1
Milano, MI 20136
Italy
+390258365283 (Phone)
+390258365283 (Fax)
Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research ( email )
Via Roentgen 1
Milan, 20136
Italy
James S. Linck (Contact Author)
Southern Methodist University ( email )
Cox School of Business
Dallas, TX 75275
United States
214-768-3933 (Phone)
HOME PAGE: http://cox.smu.edu
Hannes F. Wagner
Bocconi University - Department of Finance ( email )
Via Roentgen 1
Milano, MI 20136
Italy
HOME PAGE: http://faculty.unibocconi.eu/hanneswagner
Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research ( email )
Via Roentgen 1
Milan, 20136
Italy
Feedback to SSRN


Paper statistics
Abstract Views: 826
Downloads: 227
Download Rank: 79,649
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.421 seconds