CEO Pay and Firm Size: an Update after the Crisis

Gabaix, Xavier, Landier, Augustin and Sauvagnat, Julien (2014) CEO Pay and Firm Size: an Update after the Crisis. The Economic Journal, vol.124 (n°574). pp. 40-59.

[img]
Preview
Text
Download (611kB) | Preview
Official URL: http://tse-fr.eu/pub/27666

Abstract

In the `size of stakes' view quantitatively formalised in Gabaix and Landier (2008), CEO
compensation reflects the size of firms affected by talent in a competitive market. The years
2004-2011 were not part of the initial study and offer a laboratory to examine the theory
with new positive and negative shocks. Executive compensation (measured ex ante) did closely track the evolution of average firm value, supporting the `size of stakes' view out of
sample. During 2007 - 2009, firm value decreased by 17%, and CEO pay by 28%. During
2009-2011, firm value increased by 19% and CEO pay by 22%.

Item Type: Article
Language: English
Date: February 2014
Refereed: Yes
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Jul 2014 17:39
Last Modified: 09 Apr 2018 08:58
OAI ID: oai:tse-fr.eu:27666
URI: http://publications.ut-capitole.fr/id/eprint/15748

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year