http://knowledge.wharton.upenn.edu/ Knowledge@Wharton is an online resource that offers the latest business insights, information, and research from a variety of sources. Content includes analysis of current business trends, interviews with industry leaders and faculty, articles based on the most recent business research, book reviews, conference and seminar reports, and links to other websites. en-us Copyright (c) 2009 The Wharton School of the University of Pennsylvania http://www.wharton.upenn.edu/faculty/lambert_richard.jpg http://www.wharton.upenn.edu/faculty/ 125 45 Wharton Faculty Research Leadership and Change http://knowledge.wharton.upenn.edu/article.cfm?articleid=780&source=rss Warren Buffett’s latest attack on excessive executive compensation is another chapter in the long-running saga about how much to pay top business leaders, and how to limit the compensation of those who are deemed to be making too much. The issue is especially acute given the dismal performance of many leading stocks over the past year. The question is: What pressures, if any, can be brought to bear on these pay packages and who should bring them? Wed, 21 May 2003 00:00:00 EST Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=618&source=rss In the wake of news reports about compensation excesses in U.S. companies, Cendant recently announced that it expected to reduce the issuance of employee stock options and use grants of restricted stock instead. That decision has placed Cendant – an $8.9 billion real estate and travel conglomerate – in the vanguard of a movement to reject option-based incentives and return to a more traditional way of rewarding performance. How valid is that approach, and will other companies follow Cendant’s lead? Wed, 11 Sep 2002 00:00:00 EST Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=421&source=rss With the stock market’s rollercoaster ride continuing, managers whose compensation packages include a sizeable amount of stock options face a problem: How to minimize the risk they face from relatively undiversified portfolios. One solution, say Wharton researchers, might be a market for managerial stock options. Thu, 13 Sep 2001 00:00:00 EST Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=363&source=rss Given recent increases in the use of stock options by both “new economy” and “old economy” companies, one might reasonably expect that employees – the beneficiaries of this perk - understand how options work. But according to recent research by Wharton professors David Larcker and Richard Lambert, employees tend to be relatively uninformed as to the basic economics of stock options, a finding that has important implications for employers, boards of directors and management consultants. Wed, 23 May 2001 00:00:00 EST Finance and Investment http://knowledge.wharton.upenn.edu/article.cfm?articleid=322&source=rss Now that employees in many dot-com companies have suddenly found their stock options to be substantially “out of the money,” is it time to announce the death of stock options as an integral component of compensation packages? Not so fast, argue Wharton accounting professors Christopher Ittner, Richard Lambert and David Larcker in a new paper that studies whether the performance of new economy firms is related to the level of equity grants to employees. Mon, 19 Mar 2001 14:05:07 EST