Do corporations award CEO stock options effectively?

Article Abstract:

Analysis of stock option awards given to CEOs of big public firms in the US between 1984 and 1991 using a sample of 6,000 shows that only three of the nine most popular theories on the reasons behind the awards are valid. Among the valid assumptions are that firms in severely regulated industries do not favor stock options and that internal liquidity problems force firms to give stock options instead of cash salaries. These assumptions are, however, not to be accepted without qualification.

Research, Employee stock options, Incentives (Business)

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Higher market valuation of companies with a small board of directors

Article Abstract:

Companies with small board of directors have higher value than companies with large board of directors. The effectiveness of board of directors, which is reflected by the companies' sales, total assets, capitalization and net income, is affected by the board's size and its decision-making efficiency. Moreover, the incentive performance of CEOs of companies with small board of directors is diminished as the size of its board increases because of lesser dismissal possibility.

Analysis, Evaluation, Corporate directors, Corporate governance

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Flights of fancy: corporate jets, CEO perquisites, and inferior shareholder returns

Article Abstract:

Relationship between chief executive officers' perquisites, corporate aircraft usage and shareholder returns are examined.

United States, Personnel administration, Capital funds & cash flow, Business Aircraft Management, Usage, Stocks, Valuation, Airplanes, Company, Business aircraft

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