Graduation Year
Fall 2010
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Henrik Cronqvist
Abstract
Critics often cite poor executive compensation schemes as one of the leading causes of the recent credit crisis. This paper investigates whether compensation structures at the end of the 2006 fiscal year created incentives for Chief Executive Officers (CEOs) in the oil industry to take on excessive risk, which subsequently may have lead to weaker firm performance during the crisis. I find no evidence to support the argument that higher pay sensitivity through option and other incentive awards lead to worse firm performance. In fact, results do not provide any evidence that company performance during the crisis was related to CEO incentives.
Recommended Citation
Bindert, Christophe M., "The Impact of CEO Compensation on Firm Performance in the Oil Industry" (2010). CMC Senior Theses. 47.
https://scholarship.claremont.edu/cmc_theses/47
