IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v51y2018i1p275-313.html
   My bibliography  Save this article

Stock vesting conditions, control benefits and managerial replacement

Author

Listed:
  • Meg Adachi-Sato

Abstract

This article considers the effect of vesting conditions of stock-based compensation on firms decisions to replace managers. I indicate that firms may excessively replace managers with both long- and short-term vested stock-based compensation, while excessive retention can be caused only by short-term vested options. If the discount factor is sufficiently small, I also show that short-term vested stock-based compensation is the equilibrium contract. The study also has implications for regulations concerning mandatory deferral and clawback of executive pay.

Suggested Citation

  • Meg Adachi-Sato, 2018. "Stock vesting conditions, control benefits and managerial replacement," Canadian Journal of Economics, Canadian Economics Association, vol. 51(1), pages 275-313, February.
    • Handle: RePEc:cje:issued:v:51:y:2018:i:1:p:275-313
    DOI: 10.1111/caje.12323
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/caje.12323
    Download Restriction: access restricted to subscribers
    File URL: https://libkey.io/10.1111/caje.12323?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

    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:cje:issued:v:51:y:2018:i:1:p:275-313. 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: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.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.