Executive compensations package and stock splits: Are managers more inclined to split their shares if they stand to personally benefit from it

Broens, Robbert

ISBN 10: 384430519X / ISBN 13: 9783844305197

Published by LAP LAMBERT Academic Publishing, 2011

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Bibliographic Details

• Title: Executive compensations package and stock splits: Are managers more inclined to split their shares if they stand to personally benefit from it
• Publisher: LAP LAMBERT Academic Publishing
• Publication Date: 2011
• Language: English
• ISBN 10: 384430519X
• ISBN 13: 9783844305197
• Binding: Paperback
• Condition: Like New
• Book Type: book

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Synopsis

Are managers more inclined to split their shares if they stand to personally benefit from them? The greater the variable compensation in the remuneration package, i.e., the more a compensation package represents a ?call? option on the stock; the more inclined CEOs are to split the firms' shares. Accompanied by the increase in stock price and volatility subsequent to a stock split, CEOs can increase the value of their option packages by splitting the firm's shares as it sends a credible signal to the market. By focusing on stock option exercise behaviour of CEOs I provide initial evidence that executives use the stock split to time option exercises.

About the Author

The author holds an BSC degree in international business with a finance direction obtained from the University of Maastricht and Hong Kong University of Science and Technology. After this he obtained his MSC in Finance at the University of Maastricht