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Executive Compensation: Motivation and Guidance for casting Say-On-Pay Votes
Keywords: 5 words maximum
Investments, Executive Compensation, Say-On-Pay Votes
Very short description for use in the program to help attendees understand more than a title can describe
Securities law requires companies to put executive pay to a shareholder vote called say-on-pay. Past research offers little guidance to investors on how to cast their votes. This research uses three years of data drawn from Securities and Exchange filings by the thirty Dow Jones Industrial Average companies to provide investors with some motivation to cast, and guidance on which way to cast, their say-on-pay votes. Preliminary evidence suggests that after removing just two outliers, return on equity is strongly associated with executive compensation and provides guidance to investors on how to cast their say-on-pay votes.
Lead & Corresponding Author
Christine M. Newman, Auburn University
Job Title
Ph.D. Student
Additional Authors
Joseph A. Newman, Ph.D., Auburn University at Montgomery
Job Title
Professor of Finance
Raymond M. Johnson, Ph.D., Auburn University at Montgomery
Job Title
Professor of Finance