The DOI matches its Crossref record; 25 of the 25 references it cites were found in a registry or an index.
CEO Compensation in Financially Distressed Firms: An Empirical Analysis
Abstract
This paper studies senior management compensation policy in 77 publicly traded firms that filed for bankruptcy or privately restructured their debt during 1981 to 1987. Almost one‐third of all CEOs are replaced, and those who keep their jobs often experience large salary and bonus reductions. Newly appointed CEOs with ties to previous management are typically paid 35% less than the CEOs they replace. In contrast, outside replacement CEOs are typically paid 36% more than their predecessors, and are often compensated with stock options. On average, CEO wealth is significantly related to shareholder wealth after firms renegotiate their debt contracts. However, managers' compensation is sometimes explicitly tied to the value of creditors' claims.
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Cites
Theory of the firm: Managerial behavior, agency costs and ownership structure
Jensen, M. C., & Meckling, W. H. (1976) · Journal of Financial Economics · doi:10.1016/0304-405x(76)90026-x · Cited by 71,491
Performance Pay and Top-Management Incentives
Jensen, M. C., & Murphy, K. J. (1990) · Journal of Political Economy · doi:10.1086/261677 · Cited by 5,083
Outside directors and CEO turnover
Weisbach, M. S. (1988) · Journal of Financial Economics · doi:10.1016/0304-405x(88)90053-0 · Cited by 4,234
The effect of bonus schemes on accounting decisions
Healy, P. M. (1985) · Journal of Accounting and Economics · doi:10.1016/0165-4101(85)90029-1 · Cited by 3,283
The effects of bonus schemes on accounting decisions
Healy, P. M. (2011) · DSpace@MIT (Massachusetts Institute of Technology) · Cited by 2,579
Corporate performance and managerial remuneration
Murphy, K. J. (1985) · Journal of Accounting and Economics · doi:10.1016/0165-4101(85)90026-6 · Cited by 1,755
Stock prices and top management changes
Warner, J. B., Watts, R. L., & Wruck, K. H. (1988) · Journal of Financial Economics · doi:10.1016/0304-405x(88)90054-2 · Cited by 1,568
Gilson, S. C., John, K., & Lang, L. H. P. (1990) · Journal of Financial Economics · doi:10.1016/0304-405x(90)90059-9 · Cited by 1,094
Self-citationBankruptcy, boards, banks, and blockholders
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Self-citationLambert, R. A., & Larcker, D. F. (1987) · Journal of Accounting Research · doi:10.2307/2491081 · Cited by 1,046
Cited by
Financial Distress and Corporate Performance
OPLER, T. C., & TITMAN, S. (1994) · The Journal of Finance · doi:10.1111/j.1540-6261.1994.tb00086.x · Cited by 1,664
Are CEOs Really Paid Like Bureaucrats?
Hall, B. J., & Liebman, J. B. (1998) · The Quarterly Journal of Economics · doi:10.1162/003355398555702 · Cited by 1,308
Are CEOs Really Paid Like Bureaucrats?
Hall, B., & Liebman, J. (1997) · National Bureau of Economic Research · doi:10.3386/w6213 · Cited by 1,291
Why Firms Use Currency Derivatives
GÉCZY, C., MINTON, B. A., & SCHRAND, C. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb01112.x · Cited by 1,156
Internal Monitoring Mechanisms and CEO Turnover: A Long‐Term Perspective
Huson, M. R., Parrino, R., & Starks, L. T. (2001) · The Journal of Finance · doi:10.1111/0022-1082.00405 · Cited by 1,070
Metadata
- Authors
- GILSON, S. C., & VETSUYPENS, M. R.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1993-06
- Volume
- 48
- Issue
- 2
- Pages
- 425-458
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2158654250
- Cited by
- 484
- References
- 25
- FWCI
- 66.70
- Type
- journal article
- Language
- en
- Open access
- closed
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- GILSON, S. C., & VETSUYPENS, M. R. (1993). CEO Compensation in Financially Distressed Firms: An Empirical Analysis. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1993.tb04722.x
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
