Regulating CEO Pay
UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance
Paper Title: Regulating CEO Pay: Evidence from the Nonprofit Revitalization Act
Speaker: Rik Sen, University of New South Wales
Time and Date: 12:00 - 13:00, Wednesday 16th March 2022 (Australian Eastern Daylight Time)
Abstract: Using compensation data for 14,765 nonprofit organizations, we find that CEO pay dropped by 2-3% when new legislation adopted in New York reduced the ability of CEOs to influence their own pay. Despite cuts in pay, CEOs exerted more effort after the legislation, measured by hours worked. Further, nonprofit performance improved, as reflected in larger donor contributions, more volunteers, and greater revenues. We show that these results are consistent with the predictions of a simple principal-agent model with compensation rigging. Overall, our results suggest that regulation that targets the pay-setting process for executives can be effective at improving organizational outcomes
Moderator: Jing Xu, University of Technology Sydney
Date: Wednesday, 16th March 2022
Time: 12-1 pm (Australian Eastern Daylight Time)
Venue: On campus face-to-face seminar in room CB08.08.002 that will also be streamed via Zoom
Seminar protocols:
- The webinar will run for 45 minutes, followed by a 15 minute Q&A session.
- There will be a moderator for each seminar event, who will facilitate communication and resolve any technical issues.
- Participants can use the chat facility or raise their had to ask questions during the presentation. The moderator will then alert the speaker at the appropriate time and either ask the questions raised or unmute the participant so they can ask the question directly to the presenter.
Co-ordinator: Kenny Phua
Enquiries: Ray Alonso