Public Disclosure and its Impact on CEO Compensation: Evidence of Media Influence

Authors

Xin Zhao, Tobin College of Business, St. John's University, New York City, USAFollow

Document Type

Article

Abstract

I examine the effect of the AFL-CIO executive paywatch identification on future CEO compensation. My findings indicate that the public disclosure of CEO compensation has a negative impact on subsequent changes in CEO pay. Additionally, I find that CEOs with ex-ante overpayment have experienced changes in their subsequent compensation. This paper contributes to the literature by documenting that firms respond to negative press coverage of CEO compensation, even after controlling for the mean reversion effect associated with high CEO pay.

Recommended Citation

Zhao, Xin (2024) "Public Disclosure and its Impact on CEO Compensation: Evidence of Media Influence," Journal of Global Awareness: Vol. 5: No. 2, Article 9.
DOI: https://doi.org/10.24073/jga/5/02/09
Available at: https://scholar.stjohns.edu/jga/vol5/iss2/9