Benefits and Compensation Commons^™

The Power Of One: Effects Of Ceo Duality On Compensation Committee Quality And Ceo Compensation, Cindy K. Harris, Carol C. Cirka, Eric Farris

Business and Economics Faculty Publications

This paper contributes to the corporate governance literature by focusing on how Chief Executive Officer (“CEO”) duality and compensation committee quality are related to CEO compensation in the period since passage of the Sarbanes Oxley Act (“SOX”). Unlike research prior to SOX that focused chiefly on committee members’ independence, we measure compensation committee quality in two ways. We consider the average number of board directorships held by compensation committee members as well as the proportion of committee members with prior or current CEO duality experience. We introduce the latter variable as a new measure of quality as it has not …

Vacation As Compensation, Kevin F. Hallock

Economics Faculty Publications

There is enormous variation in vacation time. Just as there are differences in what pay mix and workplace pract ices are normal, so are there differences in vacation time — across countries, occupations, companies and time.

The Look Of The Line: An Empirical Investigation Of The Impacts Of Facial Symmetry On Salary Levels Of Offensive Linemen In The Nfl, Kristen Wampole

Business and Economics Honors Papers

Evaluation of a professional athlete's performance for the purposes of compensation determination is difficult, especially when decision making may not follow the expected "instrumental rationality." This paper will look to examine the factors, both productive and non-productive, impacting an Offensive Lineman's salary in the NFL. The purpose of this study is to determine whether an offensive lineman's salary is based on productive characteristics adhering to instrumental rationality, or whether the influence of non-productive characteristics influence salary as ultimately determined by team management. Results indicate that players within the tackle position with earning salaries in the seventy-fifth percentile gain additional benefits …

Does Race Influence Executive Compensation In Chinese Firms?, Elizabeth Mahoney

Business and Economics Honors Papers

In this study, we considered the effects of Chinese cultural and political influences on executive compensation in Chinese firms. The chief focus of this study is on whether the race of executives or the racial composition of the compensation committee affects the average compensation of executives, though other factors such as sales, industry, and compensation committee size were also included in the model. Data was collected from Chinese firms listed on the New York Stock Exchange, with data for the companies gathered for the year 2009 and executive salaries collected for the year 2010.

What Effect Do Corporate Governance Characteristics Have On Ceo Compensation In A Small Cap Firm?, Kiley Stauffer

Business and Economics Honors Papers

Extensive research has been conducted to examine the effect that corporate governance structure has on CEO compensation. Past studies have focused primarily on larger corporations and have neglected smaller public firms. By shifting focus to small cap firms, this study hopes to find patterns between CEO compensation and specific corporate governance components. These include CEO duality, the presence of a dual founder CEO, and the level of equity ownership held by the CEO. Empirical evidence has suggested that CEO duality and increased ownership equity of a dual founder CEO may significantly impact CEO compensation.

Research Brief: "The Effect Of Veterans Benefits On Education And Earnings", Institute For Veterans And Military Families At Syracuse University

Institute for Veterans and Military Families

This study found that veterans’ benefits which subsidize education make up the largest federal program for student aid, and that veterans’ benefits are estimated to increase future schooling by 1.4 years, meaning annual earnings for these veterans will be 6% higher than they would have been otherwise. In practice, that implies annual earnings approximately 6% higher than would have been expected in the absence of the benefits. In policy, policymakers should note that this study found smaller effects on earnings and education than previous studies have found. Suggestions for future study include comparing the annual earnings premium for veterans’ benefit …

What Determines Public Pension Investment Risk-Taking Policy, Nancy Mohan, Ting Zhang

Economics and Finance Faculty Publications

State public pension plans, mostly defined benefit plans, cover pension benefits for 12.8 million active public employees and 5.9 million retirees and other annuitants. However, by the end of 2009, public pension plans had accumulated a total funding deficit of $697 billion (measured by the difference between actuarial pension assets and liabilities). On average, public pension funds cover 75 percent of their liabilities, but individual state results vary greatly.

The 2008 stock market crash strongly affected pension asset value in that equity allocation on average accounted for 56 percent of invested assets. The average 2009 pension asset beta of 0.63 …

Upjohn Institute Policy Paper: Public Pension Crisis And Investment Risk Taking: Underfunding, Fiscal Constraints, Public Accounting, And Policy Implications, Nancy Mohan, Ting Zhang

Economics and Finance Faculty Publications

Public pension funds that cover retirement benefits for almost 20 million active or retired employees have been significantly underfunded. An important, though largely overlooked, issue related to pension underfunding is the excessive investment risk levels assumed by public plans. Our analysis suggests government accounting standards strongly affect public fund investment risk, as higher return assumptions (used to discount pension liabilities) are associated with higher investment risk.

Public funds undertake more risk if they are underfunded and have lower investment returns in previous years, consistent with the risk transfer hypothesis. Furthermore, pension funds in states facing fiscal constraints allocate more assets …

Nothing Lasts Forever: A Different Way To Structure Severance, Kevin F. Hallock

Economics Faculty Publications

When a CEO receives a massive payout in the face of job cuts and a precipitous drop in stock price, should we really be surprised to see shareholders (and the public) get upset?

Justice In Compensation: A Defense, Jeffrey Moriarty

Philosophy Faculty Publications

Business ethicists have written much about ethical issues in employment. Except for a handful of articles on the very high pay of chief executive officers and the very low pay of workers in overseas sweatshops, however, little has been written about the ethics of compensation. This is prima facie strange. Workers care about their pay, and they think about it in normative terms. This article's purpose is to consider whether business ethicists' neglect of the normative aspects of compensation is justified. I examine several possible justifications for neglecting compensation and show that they fail. What remains is a case for …

Cultural Context And Its Affect On Management Practices In Organizations - A Special Focus Of Compensation Practices, Shandana Shuaib

Business Review

Management practices are carried out in organizations which operate in some sort of environment. The environment is basically divided into two types: internal environment and external environment. In both these environments culture constitutes the main part. Thus, in order to fully comprehend the management practices in organizations it is utmost necessary to understand the cultural context of that society in which it operates. Many management practices if enforced without taking into consideration its cultural context may not yield the expected results. Similarly a management practice which might be very effective in one culture may not be so in another cultural …