The use of executive stock options in Australia : are they linked to firm performance?

Elder, Dougal. (2007). The use of executive stock options in Australia : are they linked to firm performance? Honours Thesis, School of Business, The University of Queensland.

       
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Author Elder, Dougal.
Thesis Title The use of executive stock options in Australia : are they linked to firm performance?
School, Centre or Institute School of Business
Institution The University of Queensland
Publication date 2007
Thesis type Honours Thesis
Total pages 98
Language eng
Subjects 15 Commerce, Management, Tourism and Services
Formatted abstract This study investigates the pay-to-performance relationship with respect to options granted to corporate CEOs for 73 firms over the period of 2004 to 2006. Specifically this study considers whether grants of options to CEOs are related to past firm performance and the relationship between firm performance and CEO option grants over time. This study also analyses the impact of changes to the regulatory environment for executive remuneration on the structure of executive compensation packages. The results indicate moderate support for a positive relationship between past firm performance and options granted to the CEO dependent on the year being considered. This finding has potential implications for the assessment of the quantum of remuneration received by CEOs. The results further indicate a weak positive relationship between regulation introduced in 2005 and the adoption of performance share plans. This result may indicate to regulators the level of success of recently enacted regulation with reference to policy objectives of the regulatory bodies. There is no support for the view that the strength of the relationship between firm performance and CEO option grants has improved over the period of study. However, this finding is suggested to have been influenced by abnormal levels of 'noise' in the relationship resulting from the expected restructuring of CEO remuneration packages during the study period.

 
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Created: Fri, 19 Nov 2010, 13:01:28 EST by Muhammad Noman Ali on behalf of The University of Queensland Library