Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 10-day trial to continue exploring with full access.

Researchers Defend Big Money CEO Severance Pay

Joe Mont | September 30, 2015

A surefire way for a company to garner bad press and anger investors is to reward an outgoing, terminated CEO with a hefty payout despite poor firm performance. A recent study detailed in the September/October issue of The Accounting Review, a publication of the American Accounting Association journal, puts a contrarian spin on those controversies and suggests these agreements are often beneficial for a company and counter the pressure on managers to deliver short-term performance at the expense of long-term goals and investments.

The academic paper, “CEO Contractual Protection and Managerial Short-Termism,” makes the case that CEOs with contracts that protect them from being terminated without cause, or that grant them generous severance packages if they are,  make them “less likely to... To get the full story, subscribe now.