Executive Equity Compensation and Incentives: A Survey

ArXiv ID: ssrn-794806 “View on arXiv”

Authors: Unknown

Abstract

Stock and option compensation and the level of managerial equity incentives are aspects of corporate governance that are especially controversial to shareholder

Keywords: executive compensation, equity incentives, corporate governance, stock options, Equities

Complexity vs Empirical Score

• Math Complexity: 1.0/10
• Empirical Rigor: 3.0/10
• Quadrant: Philosophers
• Why: The paper is a literature survey focused on economic theory and agency frameworks, with minimal advanced mathematics, and presents empirical evidence through summaries of prior studies rather than original backtests or implementation-heavy analysis.

  flowchart TD
    A["Research Goal: Analyze Executive Equity Compensation & Incentives"] --> B["Methodology: Survey & Review of Empirical Studies"]
    B --> C["Data Inputs: Executive Compensation Data & Equity Holdings"]
    C --> D["Computational Process: Estimating Equity Incentive Elasticity"]
    D --> E{"Key Findings / Outcomes"}
    E --> F["Stock Options alter risk-taking behavior"]
    E --> G["Equity incentives align manager-shareholder interests"]
    E --> H["Optimal mix depends on firm size and growth stage"]