Cost-efficient performance-vesting equity

Skovoroda, R., Bruce, A. ORCID: 0000-0001-5748-0701, Buck, T. and Gregory-Smith, I., 2019. Cost-efficient performance-vesting equity. Economics Letters, 182, pp. 37-39. ISSN 0165-1765

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Abstract

We analyze the incentive effects of the Performance-Vesting Equity (PVE) component of executive pay that is characterized 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: Journal article
Publication Title: Economics Letters
Creators: Skovoroda, R., Bruce, A., Buck, T. and Gregory-Smith, I.
Publisher: Elsevier
Date: September 2019
Volume: 182
ISSN: 0165-1765
Identifiers:
NumberType
10.1016/j.econlet.2019.06.002DOI
S0165176519302150Publisher Item Identifier
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 13 Jun 2019 08:55
Last Modified: 30 Sep 2020 10:40
URI: http://irep.ntu.ac.uk/id/eprint/36750

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