IDEAS home Printed from https://ideas.repec.org/a/bla/jrinsu/v71y2004i2p285-307.html
   My bibliography  Save this article

Contracting Incentives and Compensation for Property‐Liability Insurer Executives

Author

Listed:
  • Elizabeth Grace

Abstract

This article examines several hypotheses about the structure and level of compensation for 103 property‐liability chief executive officers (CEOs) from 1995 through 1997. The greater the level of firm risk and the larger the firm, the greater the use of incentive compensation. Insurers subject to more regulatory attention and those whose CEOs have greater stock ownership make less use of incentive compensation. There is some evidence that option grants and restricted stock awards provide CEOs with differing incentives. This article finds that corporate governance structures, managers' stock ownership, and regulatory attention are not adequate to prevent CEOs from receiving compensation levels in excess of what economic factors predict. Contrary to findings in prior studies, there is little evidence that use of incentive compensation or level of total compensation paid increases with insurer investment opportunities, as traditionally measured.

Suggested Citation

  • Elizabeth Grace, 2004. "Contracting Incentives and Compensation for Property‐Liability Insurer Executives," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 71(2), pages 285-307, June.
    • Handle: RePEc:bla:jrinsu:v:71:y:2004:i:2:p:285-307
    DOI: 10.1111/j.0022-4367.2004.00090.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.0022-4367.2004.00090.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.0022-4367.2004.00090.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Imes, Matthew & Anderson, Ronald, 2021. "Executive risk-taking and the agency cost of debt," Journal of Empirical Finance, Elsevier, vol. 64(C), pages 78-94.
    2. Andre P. Liebenberg & David W. Sommer, 2008. "Effects of Corporate Diversification: Evidence From the Property–Liability Insurance Industry," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(4), pages 893-919, December.
    3. Joseph Calandro, 2006. "Accident Year Development, Bonus Banks, and Insurance Incentive Compensation," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 9(2), pages 205-217, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jrinsu:v:71:y:2004:i:2:p:285-307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/ariaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.