CEO Perquisites in Canada, 1971-2008: Certainly Not Pure Managerial Excess

Patrice Gelinas and Lisa Baillargeon

International Journal of Business and Management, 2018, vol. 13, issue 5, 105

Abstract: This paper explores Canadian market data on CEO perquisites gathered by a large consulting firm over the period from 1971 to 2008. Perquisites are one of the least documented total compensation components in the academic literature on executive pay. Scant existing literature may be due to the relatively recent and limited corporate disclosures on CEO perquisites, as well as to the comparatively modest monetary value of perquisites relative to other total CEO compensation components. Meanwhile, CEO perquisites regularly capture the public’s imagination in the media because of some perceived excesses, such as immoderate personal use of corporate aircraft (see Rajan & Wulf, 2006). We document a significant evolution in CEO perquisites practices over the period. Consistent with a nascent body of literature, this paper supports empirically hypotheses arguing that CEO perquisites do not uniquely occur as a result of an agency problem, the main theoretical explanation for their existence as of yet, but that they can also serve a legitimate, value-creating, business purpose for the benefit of shareholders.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/ijbm/article/download/73782/41265 (application/pdf)
http://www.ccsenet.org/journal/index.php/ijbm/article/view/73782 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijbmjn:v:13:y:2018:i:5:p:105

Access Statistics for this article

More articles in International Journal of Business and Management from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().