Compensating Outside Directors with Stock: The Impact on Non-Primary Stakeholders
Two obvious trends in corporate governance include broadening board accountability beyond shareholders’ interests and paying outside directors with equity compensation (stock and stock options). By integrating common agency and instrumental stakeholder theories, we examine the effect of stock compen...
| VerfasserInnen: | ; |
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| Medienart: | Elektronisch Aufsatz |
| Sprache: | Englisch |
| Verfügbarkeit prüfen: | HBZ Gateway |
| Journals Online & Print: | Lade...
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| Fernleihe: | Fernleihe für die Fachinformationsdienste |
| Veröffentlicht: |
Springer Science + Business Media B. V
2013
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| In: |
Journal of business ethics
Jahr: 2013, Band: 116, Heft: 1, Seiten: 67-85 |
| weitere Schlagwörter: | B
Outside director stock compensation
B Stakeholder Theory B Common agency theory B Corporate Social Responsibility |
| Online Zugang: |
Volltext (JSTOR) Volltext (lizenzpflichtig) |
| Zusammenfassung: | Two obvious trends in corporate governance include broadening board accountability beyond shareholders’ interests and paying outside directors with equity compensation (stock and stock options). By integrating common agency and instrumental stakeholder theories, we examine the effect of stock compensation on secondary stakeholders and a firm’s participation in social issues, two areas where interests are less aligned with shareholder value. Consistent with our predictions, we found that while stock compensation may be an effective way to align directors’ goals to those of shareholders, it has adverse effects on important non-shareholder constituencies in the company’s operating environment. |
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| ISSN: | 1573-0697 |
| Enthält: | Enthalten in: Journal of business ethics
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| Persistent identifiers: | DOI: 10.1007/s10551-012-1447-7 |