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"Directors' compensation is primarily based on an annual stock grant," he said.
However, the potential effect of directors' compensation on their ability to objectively monitor RPT activities has received little attention.
First, we focus on DCL and expect a positive relation between independent directors' compensation and the occurrence of RPTs.
In sum, our study provides empirical evidence on the association between independent directors' compensation and related party transactions.
Mustich says that's partly driven by recent litigation that could make it easier for investors to take legal action on directors' compensation.
Other proposals are designed to address specific issues, such as directors' compensation or the separation of the offices of board chair and CEO.
Similar(33)
Director Compensation.
Director Compensation Provisions.
We made important adjustments to director compensation.
Stockholder Approval of Specific Director Compensation Limit.
We find that elements of outside director compensation are significantly related to the investment opportunity set.
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