Is Executive Compensation Different Across S&P Listed Firms?

Quartely Journal of Finance and Accounting, Vol 47 (4), 171-192

Posted: 3 Nov 2013

See all articles by João Paulo Vieito

João Paulo Vieito

Scholl of Business Studies - Polytechnic Instituto of Viana do Castelo

Walayet A. Khan

University of Evansville

Antonio Melo Cerqueira

Universidade do Porto - Faculdade de Economia (FEP)

Elisio Brandao

Universidade do Porto - Faculdade de Economia (FEP)

Date Written: November 1, 2008

Abstract

We investigate, using 13 years of data from 1992 to 2004, whether the total values, determinants, and the forms of executive compensation for firms listed on the S&P 500, S&P Mid Cap, and S&P Small Cap index, are the same or different. We also explore whether the above compensation variables change after the NASDAQ Crash in 2000 and the enactment of the Sarbanes-Oxley (SOX) Act in 2002. Our empirical results reveal that generally the average total compensation and component weights are significantly different across S&P index firms during each sample year and also in years before and after the NASDAQ crash and the enactment of the Sarbanes-Oxley Act. Use of stock options decreases and use of restricted stocks and bonuses increases after the year 2000. We also find that the factors that explain executive compensation in these three groups are generally different and that the determinants and forms of executive compensation change after the NASDAQ crash.

Keywords: Executive Compensation, Stocks (Finance), Prices, Standard & Poor's 500 Index, Wages, NASDAQ Market System

Suggested Citation

Vieito, João Paulo and Khan, Walayet A. and Cerqueira, Antonio Melo and Brandão, Elísio Fernando Moreira, Is Executive Compensation Different Across S&P Listed Firms? (November 1, 2008). Quartely Journal of Finance and Accounting, Vol 47 (4), 171-192 , Available at SSRN: https://ssrn.com/abstract=2348831

João Paulo Vieito (Contact Author)

Scholl of Business Studies - Polytechnic Instituto of Viana do Castelo ( email )

Avenida Miguel Dantas
Valença, 4930
Portugal

Walayet A. Khan

University of Evansville ( email )

School of Business Admin 1800 Lincoln Avenue
Evansville, IN 47722
United States
812-479-2869 (Phone)
812-479-2872 (Fax)

Antonio Melo Cerqueira

Universidade do Porto - Faculdade de Economia (FEP) ( email )

Rua Roberto Frias
s/n
Porto, 4200-464
Portugal

Elísio Fernando Moreira Brandão

Universidade do Porto - Faculdade de Economia (FEP) ( email )

Rua Roberto Frias
s/n
Porto, 4200-464
Portugal

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