Authors Christopher Armstrong from The Wharton School University of Pennsylvania, Ian Gow of Harvard Business School and David Larcker from the Graduate School of Business Rock Center for Corporate Governance, Stanford University, look at the efficacy of shareholder voting.
The study examines the effects of shareholder support for equity compensation plans on subsequent chief executive officer compensation.
Using cross-sectional regression, instrumental variable and regression-discontinuity research designs, the authors find little evidence that either lower shareholder voting support for, or outright rejection of, proposed equity-compensation plans leads to decreases in the level or composition of future CEO incentive compensation.
Click here to read The Efficacy of Shareholder Voting: Evidence from Equity Compensation Plans.
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