Institutional activism types and CEO compensation: A time-series analysis of large Canadian corporations

Shamsud D. Chowdhury, Eric Zengxiang Wang

Research output: Contribution to journalJournal Articlepeer-review

45 Citations (Scopus)

Abstract

Using data from the Toronto Stock Exchange 300 companies for a 7-year period, the authors examine the role that institutional activism types and three salient board monitoring mechanisms - CEO/board chair split, board composition, and compensation committee independence - play in influencing CEO contingent compensation in Canada. The authors find that the effect of institutional activism, especially proxy based, is stronger on contingent CEO compensation and that its effects span a longer time. As opposed to the interactions of cumulative proxy-based activism with any of the three monitoring mechanisms, the interactions of cumulative non-proxy-based activism with both CEO/board chair split and compensation committee independence appear to influence CEO contingent compensation. The study's implications are given.

Original languageEnglish
Pages (from-to)5-36
Number of pages32
JournalJournal of Management
Volume35
Issue number1
DOIs
Publication statusPublished - 2009

Keywords

  • Board characteristics
  • CEO compensation
  • Corporate governance
  • Institutional activism

Fingerprint

Dive into the research topics of 'Institutional activism types and CEO compensation: A time-series analysis of large Canadian corporations'. Together they form a unique fingerprint.

Cite this