Economics and Finance Seminar Series
Overview
The School of Economics and the Department of Finance run a number of regular internal and external seminars and workshops during semester periods. Weekly presentations feature a range of topics and concerns.
These public seminars and workshops are free to members of La Trobe and the public. They are invaluable for students, academic staff and researchers alike.
The presenters are from La Trobe, the private sector and other academic institutions.
Please see below for upcoming Seminar programs.
| Event Name | 2012 School of Economics, Department of Finance External Seminar Series |
| Start Date | 14th Dec 2012 10:30am |
| End Date | |
| Duration | N/A |
| Description | Executive Pensions: Complements or Substitutes?10:30 am in Room 214 of Donald Whitehead Building (ECO LT) Speakers
Lisa Goh Abstract
This study investigates pensions as an element of total executive compensation, and their role in the overall compensation package. It also examines the relationship between pensions and more visible and performance-sensitive forms of compensation such as bonuses and equity. Using a sample of FTSE 100 executives from 2004–2008, the study presents evidence of complex pension arrangements awarded to executives in the UK, and finds that they are an economically significant component of pay, adding on average 17% to the total pay package. The study finds that CEO pensions are negatively related to bonuses in both cross-sectional and time-series settings, suggesting that pensions function as both a passive and dynamic substitute for more transparent and visible forms of compensation. The finding of a dynamic substitution effect between pensions and bonuses is consistent with the managerial power hypothesis, shedding new light on the competing optimal contracting and managerial power views of executive pay. Our findings suggest that greater attention should be paid to pensions by investors and corporate governance regulators, and highlight the need to standardize and enhance the quality of disclosures for this important element of executive pay. |
