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Executive compensation based on asset values

Author

Summary, in English

This paper describes how credit default swaps could be employed to create performance based

executive compensation portfolios that reflect the value of a firm’s debt as well as equity; i.e. the

total value of all a firm’s assets. We define so-called Asset Value Unit (AVU) compensation

portfolios that work both for executive- and non-executive pay schemes in financial as well as

non-financial firms.

Publishing year

2012

Language

English

Pages

1498-1502

Publication/Series

Economics Bulletin

Volume

32

Issue

2

Document type

Journal article

Publisher

Economics Bulletin

Topic

  • Economics

Keywords

  • executive pay
  • executive compensation
  • stock
  • credit default swap

Status

Published

ISBN/ISSN/Other

  • ISSN: 1545-2921