Citation

Discussion Paper Details

Please find the details for DP12318 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Changes in CEO Stock Option Grants: A Look at the Numbers

Author(s): Vasiliki Athanasakou, Daniel Ferreira and Lisa Goh

Publication Date: September 2017

Keyword(s): CEO overconfidence, corporate investment and stock option grants

Programme Area(s): Financial Economics

Abstract: We study changes in CEO stock option grants. Unlike most of the literature, we focus on the number rather than the value of options granted. We first provide a detailed description of the main aggregate trends in CEO stock option grants. We then consider the cross-sectional heterogeneity in option-granting activity. We find that CEOs who either overinvest or underinvest subsequently receive fewer stock options as part of their compensation packages. CEOs who hold exercisable deeply-in-the-money options (overconfident CEOs) also receive fewer stock options in subsequent periods. Our findings provide insights into the dynamics of CEO compensation contracts.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12318

Bibliographic Reference

Athanasakou, V, Ferreira, D and Goh, L. 2017. 'Changes in CEO Stock Option Grants: A Look at the Numbers'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12318