Determinants of CEO severance contracts and their components and the effects of severance contracts on executive turnover

Shane Van Dalsem

Journal of Economics and Business, 2010, vol. 62, issue 4, 257-272

Abstract: This paper identifies the determinants of executive severance contracts and their components and the effect of severance contracts on the likelihood of forced and unforced turnover. The results provide evidence that severance contracts are used as a form of insurance for incoming CEOs. The results also provide evidence that a fixed cash component and a time-dependent maturity policy in the severance contract increases the likelihood of forced turnover.

Keywords: Executive; severance; agreements; Executive; compensation; Executive; turnover (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:62:y::i:4:p:257-272

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