Finance Seminar

What Death Can Tell: Are Executives Paid for Their Contributions to Firm Value?

Kasper Meisner Nielsen, Hong Kong University of Science and Technology

1st Oct 2010  11:00 am - The Boardroom, Darlington Centre

An efficient managerial labor market should compensate executives according to theircontribution to shareholder value. We provide novel empirical evidence about the relationshipbetween executive pay and managerial contribution to value by exploiting the exogenousvariation resulting from stock price reactions to sudden deaths.