Abstract

http://ssrn.com/abstract=6703
 


 



Total Compensation Strategy


Steven O'Byrne


Bureau of Labor Statistics


Journal of Applied Corporate Finance, Vol. 8, No. 2, Summer 1995

Abstract:     
In Total Compensation Strategy," Steven O'Byrne argues that the typical corporate compensation plan is flawed. Even though a large proportion of the current year's compensation may be "at risk," the commitment to maintaining competitive levels of compensation in all future years effectively ensures that a large proportion of the executive's wealth is not at risk. To create a total wealth incentive that approaches entrepreneurial incentives, the author argues, total compensation strategy must be based on policies that make a substantial proportion of management wealth sensitive to current performance. These policies include front-loaded option grants, fixed-share option grant guidelines, and formula-based rather than negotiated bonus plans.

JEL Classification: G30

Accepted Paper Series





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Date posted: May 25, 1998  

Suggested Citation

O'Byrne, Steven, Total Compensation Strategy. Journal of Applied Corporate Finance, Vol. 8, No. 2, Summer 1995. Available at SSRN: http://ssrn.com/abstract=6703

Contact Information

Steven O'Byrne (Contact Author)
Bureau of Labor Statistics ( email )
Larchmont, NY 10538
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