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The Impact of Say-on-Pay on Executive Compensation

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  • Steven Balsam
  • Jennifer Yin

    (UTSA)

Abstract

We investigate the impact of say-on-pay on 2010 executive compensation, finding affected firms reduced compensation and made it more performance-based, with that decrease being greater for firms that previously overpaid their CEOs. We also find the percentage of votes cast against executive pay is lower when the firm reduced executive compensation in advance of the initial say-on-pay vote, but higher when the firm pays higher total compensation, has a large increase in compensation, has a larger amount of compensation that cannot be explained by economic factors, or has a higher amount of “other compensation,” a category which includes perquisites.Length: 39 pages

Suggested Citation

  • Steven Balsam & Jennifer Yin, 2013. "The Impact of Say-on-Pay on Executive Compensation," Working Papers 0196acc, College of Business, University of Texas at San Antonio.
    • Handle: RePEc:tsa:wpaper:0196acc
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Executive compensation; Say on Pay;

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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