Large Shareholders and Independent Director Equity Compensation
MetadataShow full item record
This paper investigates the use of equity compensation for independent directors, with a focus on the impact of large shareholders on a company's tendency to use equity compensation to align independent directors’ interests with those of shareholders. Based on data from 215 large Australian listed companies from 2005–2009, our analyses show that the use of equity incentive pay for independent directors is more likely when the aggregate ownership percentage of large shareholders is moderate, when there are multiple large shareholders and when the ownership stakes of large shareholders are more comparable. This paper contributes to the literature by providing new evidence of how various aspects of ownership dispersion affect compensation design for independent directors.
This is the peer reviewed version of the following article: Adithipyangkul, P. and Leung, T. 2016. Large Shareholders and Independent Director Equity Compensation. Australian Accounting Review. 26 (2): pp. 208-221., which has been published in final form at http://doi.org/10.1111/auar.12097. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving at http://olabout.wiley.com/WileyCDA/Section/id-828039.html#terms
Showing items related by title, author, creator and subject.
Prabowo, Muhammad Agung (2010)The study investigates the effect of the compositions of board of directors on firm performance in Indonesia. This country offers a specific institutional environment, which provides a natural setting to further examine ...
State Ownership, Legal Institution, and Independent Director Compensation: An Exploratory Study in ChinaAdithipyangkul, Pattarin; Leung, T. (2015)This study examines the determinants of independent director compensation in China, with particular interest in the impact of state ownership and legal institutions. Controlling for the characteristics of directors, boards, ...
Singhchawla, W.; Evans, Robert; Evans, John (2011)This study investigates whether the monitoring of company management by an independent board of directors serves to enhance firm performance in Australia. The paper explores in detail the impact of the level of independence ...