One Dollar CEOs

Bibliographic Details
Main Author: Loureiro, Gilberto
Publication Date: 2020
Other Authors: Makhija, Anil K., Zhang, Dan
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: https://hdl.handle.net/1822/69289
Summary: We study the impact of $1 CEO salaries on firm performance and CEO total compensation. We find that, on average, $1 CEO firms earn higher total compensation and lower stock market returns relative to their peers after the adoption of $1 salaries. The effect on total compensation is mitigated if the $1 CEO firm is undergoing restructuring or the CEO is entrenched and aggravated if the CEO is overconfident. The stock market underperformance especially affects firms not under a restructuring process and firms with entrenched or overconfident CEOs.
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spelling One Dollar CEOsCEO compensationCEO characteristicsFirm performanceRestructuringEntrenched CEOsSocial SciencesWe study the impact of $1 CEO salaries on firm performance and CEO total compensation. We find that, on average, $1 CEO firms earn higher total compensation and lower stock market returns relative to their peers after the adoption of $1 salaries. The effect on total compensation is mitigated if the $1 CEO firm is undergoing restructuring or the CEO is entrenched and aggravated if the CEO is overconfident. The stock market underperformance especially affects firms not under a restructuring process and firms with entrenched or overconfident CEOs.Gilberto Loureiro also thanks FEDER through COMPETE and FCT (Fundação para a Ciência e a Tecnologia) for financial support – COMPETE2020 under PT2020 Partnership Agreement.ElsevierUniversidade do MinhoLoureiro, GilbertoMakhija, Anil K.Zhang, Dan20202020-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/1822/69289eng0148-296310.1016/j.jbusres.2019.11.086info:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-04-12T05:13:03Zoai:repositorium.sdum.uminho.pt:1822/69289Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-28T16:14:11.948370Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv One Dollar CEOs
title One Dollar CEOs
spellingShingle One Dollar CEOs
Loureiro, Gilberto
CEO compensation
CEO characteristics
Firm performance
Restructuring
Entrenched CEOs
Social Sciences
title_short One Dollar CEOs
title_full One Dollar CEOs
title_fullStr One Dollar CEOs
title_full_unstemmed One Dollar CEOs
title_sort One Dollar CEOs
author Loureiro, Gilberto
author_facet Loureiro, Gilberto
Makhija, Anil K.
Zhang, Dan
author_role author
author2 Makhija, Anil K.
Zhang, Dan
author2_role author
author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Loureiro, Gilberto
Makhija, Anil K.
Zhang, Dan
dc.subject.por.fl_str_mv CEO compensation
CEO characteristics
Firm performance
Restructuring
Entrenched CEOs
Social Sciences
topic CEO compensation
CEO characteristics
Firm performance
Restructuring
Entrenched CEOs
Social Sciences
description We study the impact of $1 CEO salaries on firm performance and CEO total compensation. We find that, on average, $1 CEO firms earn higher total compensation and lower stock market returns relative to their peers after the adoption of $1 salaries. The effect on total compensation is mitigated if the $1 CEO firm is undergoing restructuring or the CEO is entrenched and aggravated if the CEO is overconfident. The stock market underperformance especially affects firms not under a restructuring process and firms with entrenched or overconfident CEOs.
publishDate 2020
dc.date.none.fl_str_mv 2020
2020-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://hdl.handle.net/1822/69289
url https://hdl.handle.net/1822/69289
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0148-2963
10.1016/j.jbusres.2019.11.086
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
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reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
_version_ 1833595825093083136

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