Do compensation consultants assist in setting easy targets in performance-vested equity plans for CEOs?

Authors
  • Y.F. Kuang
  • B. Qin
  • A.S. van Teijen
Publication date 2014
Journal Management Control & Accounting
Volume | Issue number 2014 | 2
Pages (from-to) 26-32
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
Abstract In this paper, we examine the role of a compensation consultant in executive compensation design. We find that firms hiring compensation consultants set more challenging performance targets than firms not using a consultant. The potential conflicts of interest between a client firm and its consultant (i.e., the consultant providing multiple services to the client) does not influence the target difficulty.
Document type Article
Language English
Published at
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