An Introduction to Executive Compensation
General readers have no idea why people should care about what executives are paid and why they are paid the way they are. That's the reason that "The Wall Street Journal", "Fortune", "Forbes", and other popular and practitioner publications have regular coverage on them. This book not only proposes a reason - executives need incentives in order to maximize firm value (economists call this 'agency theory') - it also describes the nature and design of executive compensation practices. Those incentives can take the form of benefits (salary, stock options), perquisites (reflecting the status of the executive within the organizational culture. This book is important because it takes the elements of an executive compensation package apart, analyzing them in the contexts of both economic theory and corporate practice and then explains how, under varying conditions, one might construct a compensation package that optimizes an executive's and a corporation's performance.Following are the key features: It presents an objective analysis of current executive compensation practices; comprehensive reviews of academic literature and extant practice; explains and illustrates the various components of the compensation package; and discusses the incentive, financial reporting, tax, political, equity, and firm value effects of those components.
- Hardback | 387 pages
- 154 x 230 x 22mm | 680.39g
- 13 Apr 2002
- Elsevier Science Publishing Co Inc
- Academic Press Inc
- San Diego, United States
Table of contents
Part I: Introduction Introduction Overview of the Compensation Package An introduction to designing the executive compensation contract Part II: The Components of the Compensation Package Salary Bonus (Short and Long Term) Stock Grants and Options Deferred Compensation Part III: Related Issues Ownership of the Corporation Corporate Governance Part IV: Designing the Compensation Contract Is Executive Compensation Really that High? The Effect of Corporate and Executive Characteristics on Designing an Optimal Compensation Contract Designing the Executive Compensation Contract Conclusion: Recent Trends and the Future of Executive Compensation
About Steven Balsam
Steven Balsam, Director of the Ph.D. Program in Business, Associate Professor of Accounting and Merves Research Fellow at the Fox School of Business at Temple University, obtained his Ph.D. from the City University of New York (Baruch College) in 1991. His research interests are in the areas of executive compensation and capital markets. He has published articles in academic journals including the Journal of Accounting and Economics, Contemporary Accounting Research, Journal of the American Taxation Association, Journal of Accounting and Public Policy, Journal of Accounting, Auditing and Finance, and Accounting Horizons. Prior to coming to Temple University he taught at Baruch College and the University of Rochester. Before entering academia he was a Certified Public Accountant working for the international accounting firm of Ernst & Young.
"Professor Balsam has written an outstanding introduction to this important and complex field. Both beginners and experienced managers will learn more about the structure and design of executive compensation programs." --Ira T. Kay, Watson Wyatt Worldwide "This book is a timely, comprehensive, and well-researched synthesis of what's happening in the world of executive compensation today. The book is sophisticated in its content, but presented in such a way that a novice can understand it. The book links compensation theory to the real world, illustrates concepts with real life examples, and is a practical guide to understanding and designing compensation packages for today's executives. This book is a 'must read' for Board members, CEOs, and Human Resource and Compensation professionals alike." --Robin A. Ferracone, Worldwide Partner, Mercer Consulting