Abstract

http://ssrn.com/abstract=838347
 
 

References (22)



 
 

Citations (59)



 


 



The Power of the Pen and Executive Compensation


John E. Core


Massachusetts Institute of Technology (MIT) - Sloan School of Management

Wayne R. Guay


University of Pennsylvania - Accounting Department

David F. Larcker


Stanford University - Graduate School of Business

May 23, 2007


Abstract:     
We examine the press' role in monitoring and influencing executive compensation practice using more than 11,000 press articles about CEO compensation from 1994 to 2002. Negative press coverage is more strongly related to excess annual pay than to raw annual pay, suggesting a sophisticated approach by the media in selecting CEOs to cover. However, negative coverage is also greater for CEOs with more option exercises, suggesting the press engages in some degree of "sensationalism." We find little evidence that firms respond to negative press coverage by decreasing excess CEO compensation or increasing CEO turnover.

Number of Pages in PDF File: 54

Keywords: press, media, executive compensation, corporate governance

JEL Classification: G32, G34, J33, M41

working papers series


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Date posted: November 7, 2005  

Suggested Citation

Core, John E. and Guay, Wayne R. and Larcker, David F., The Power of the Pen and Executive Compensation (May 23, 2007). Available at SSRN: http://ssrn.com/abstract=838347 or http://dx.doi.org/10.2139/ssrn.838347

Contact Information

John E. Core
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
77 Massachusetts Ave.
E62-416
Cambridge, MA 02138
United States
Wayne R. Guay (Contact Author)
University of Pennsylvania - Accounting Department ( email )
3641 Locust Walk
Philadelphia, PA 19104-6365
United States
215-898-7775 (Phone)
215-573-2054 (Fax)

David F. Larcker
Stanford University - Graduate School of Business ( email )
Graduate School of Business
518 Memorial Way
Stanford, CA 94305-5015
United States
650-725-6159 (Phone)

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