Economic Brief
Measuring CEO Compensation
Download essayCompensation packages for CEOs of large public companies often include grants of restricted stock and stock options, the value of which to the CEO depends on the future performance of the firm, as well as on the terms of the grants. This value, which is key to evaluating the CEO's incentives, can be estimated in a number of ways. The authors use measures based on the expected values and the realized values of pay to compare the compensation of CEOs in a sample of large public U.S. firms and a subset of financial firms before and after the 2007-08 financial crisis.
Additional Resources
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