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.
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.
Department/s
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