Executive compensation based on asset values

Hans Byström

Economics Bulletin, 2012, vol. 32, issue 2, 1504-1508

Abstract: This paper describes how credit default swaps could be employed to create performance based executive compensation portfolios that reflect the value of a firm's debt as well as equity; i.e. the total value of all a firm's assets. We define so-called Asset Value Unit (AVU) compensation portfolios that work both for executive- and non-executive pay schemes in financial as well as non-financial firms.

Keywords: executive pay; executive compensation; stock; credit default swap (search for similar items in EconPapers)
JEL-codes: G1 G3 (search for similar items in EconPapers)
Date: 2012-05-18
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Related works:
Working Paper: Executive Compensation Based on Asset Values (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-12-00074

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