Skovoroda, R., Bruce, A., Buck, T. and Gregory-Smith, I. (2019) Cost-efficient performance-vesting equity. Economics Letters, 182, pp. 37-39. (doi: 10.1016/j.econlet.2019.06.002)
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Abstract
We analyse the incentive effects of the Performance-Vesting Equity (PVE) component of executive pay that is characterised by zero exercise price and performance-contingent vesting. We demonstrate how PVE with upward-sloping convex/concave vesting curves can be a more efficient risk-sharing and incentive alignment device than strictly convex stock options.
| Item Type: | Articles |
|---|---|
| Status: | Published |
| Refereed: | Yes |
| Glasgow Author(s) Enlighten ID: | Buck, Professor Trevor |
| Authors: | Skovoroda, R., Bruce, A., Buck, T., and Gregory-Smith, I. |
| College/School: | College of Social Sciences > Adam Smith Business School > Management |
| Journal Name: | Economics Letters |
| Publisher: | Elsevier |
| ISSN: | 0165-1765 |
| ISSN (Online): | 0165-1765 |
| Published Online: | 05 June 2019 |
| Copyright Holders: | Copyright © 2019 Elsevier |
| First Published: | First published in Economics Letters 182: 37-39 |
| Publisher Policy: | Reproduced in accordance with the copyright policy of the publisher |
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