Measuring Executive Compensation

24 Pages Posted: 27 Jun 2017

See all articles by Graeme Guthrie

Graeme Guthrie

Victoria University of Wellington - School of Economics & Finance

Date Written: June 26, 2017

Abstract

This note describes how meaningful measures of executive compensation can be extracted from the proxy statements that firms send to shareholders each year. It shows where the information needed to calculate such measures can be found and why the most informative measures of executive pay differ from the headline figures reported in the summary compensation table. The proposed method for measuring compensation is demonstrated using the example of the executive with the highest reported pay in FY2016, Thomas Rutledge of Charter Communications.

Keywords: executive compensation, employee stock options

JEL Classification: G34, M12

Suggested Citation

Guthrie, Graeme, Measuring Executive Compensation (June 26, 2017). Available at SSRN: https://ssrn.com/abstract=2992541 or http://dx.doi.org/10.2139/ssrn.2992541

Graeme Guthrie (Contact Author)

Victoria University of Wellington - School of Economics & Finance ( email )

P.O. Box 600
Wellington 6140
New Zealand
64 4 463 5763 (Phone)

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