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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.
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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: | 02 Apr 2021 15:48 |
| OAI Identifier: | oai:tse-fr.eu:27666 |
| URI: | https://publications.ut-capitole.fr/id/eprint/15748 |
