The impact of the high technology crisis on CEO compensation
APBITM 2011 - Proceedings2011 IEEE International Summer Conference of Asia Pacific Business Innovation and Technology Management
CEO compensation, Corporate governance, Financial crisis, High technology, Options
The paper empirically examines CEO compensation in 125 UK high technology firms in an attempt to identify and understand any changes in the pay system evident after the global technology market correction in 2000. We find evidence that link between executive pay and market returns weakened and that the fixed component of executive pay in these companies rose post-adjustment. These changes appear to compensate executives for the increased risk associated with variable pay rather than rectify any perceived problems with executive incentives pre-2000.
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Cheng, S., & Rayton, B. A. (2011). The impact of the high technology crisis on CEO compensation. In 2011 IEEE International Summer Conference of Asia Pacific Business Innovation and Technology Management, Dalian, 2011 (pp.131-136). doi: 10.1109/APBITM.2011.5996308