دانلود رایگان مقاله انگلیسی جبران بازنشستگی مدیرعامل: جبران ییش از حد بدهی یا ابزار مدیریت ریسک؟ - الزویر 2018

Abstract

CEOs face constant scrutiny over their compensation packages. This scrutiny has only intensified amid discussions of CEO-to-employee pay ratios and income inequality nationwide. CEO retirement packages are criticized as camouflage compensation used to award excessive compensation to CEOs and were, prior to 2006, less transparent than they are now. Thanks to the transparent disclosures now required by the SEC, we have a better understanding of the types and amounts of compensation owed to CEOs afterthey depart or retire,termed inside debt. I investigate whether all CEOinsidedebt components sharesimilarincentiveeffects andoffers some thoughtson how companies might structure these packages to be most effective. I discuss the structure and incentive effects ofthe two primary components ofinside debt: deferred compensation and supplemental executive retirement plans (SERPs). I explain why inside debt, particularly CEO SERPs, may actually help companies manage firm risk. Finally,I outline the best ways to structure inside debt so thatitfunctions as a resource to manage firm risk and foster a long-term perspective rather than mirroring the incentive effect of equity, increasing risk, and encouraging a myopic focus.

Summary

Public concern about CEO pay–—fueled by CEO-employee pay ratios for annual compensation–—is now focusing on CEO-employee retirementratios.Companies nowface thechallenge of justifying CEO compensation to investors, the public, and other stakeholders. Due to the great disparity in CEO and employee retirement savings, criticism of inside debt is likely to increase. These debates generally are fueled by the amount of compensation,which leads to criticismof certain types of compensation due to the associated values, ignoring the incentive effects of inside debt. As the disparity between CEO compensation and employee compensation continues to grow, companies face greater challenges in explaining compensation packages. However, inside debt compensation is a tool that can address frustrations regarding excessive risk taking, myopic quarter-to-quarter focus, and long-term sustainability goals. Companies need to be carefulto structureinside debt so thatitismost effectiveandto explain theincentiveimpact. Thiscould help educate the public and investors as to why this form of compensation can be useful.