Calculation of Compensation Incentives and Firm-Related Wealth Using Execucomp: Data, Program, and Explanation
10 Pages Posted: 27 Jul 2013
Date Written: July 19, 2013
In response to recent requests from academics and practitioners, this note addresses the data and program we use in our published articles on executive compensation and incentives. First, we detail our methodology for the calculation of delta (pay-performance sensitivity), vega (risk-taking incentives), and firm-specific wealth (inside equity) for executives on the Execucomp database. Second, we provide the data on these measures for the period 1992-2010 as well as the accompanying SAS program as downloadable files on our websites.
Keywords: Executive compensation, compensation incentives, pay-performance sensitivity, risk-taking incentives, inside equity, firm-specific wealth
JEL Classification: G3, J33, M52
Suggested Citation: Suggested Citation