By Amar Gande and Swaminathan Kalpathy, includes “We examine whether risk-taking among the largest financial firms in the U.S. is related to CEO equity incentives before the 2008 financial crisis. … We conclude that equity incentives (vega) embedded in CEO compensation contracts were positively associated with risk-taking in financial firms which resulted in potential solvency problems.”
Read the full article on: Journal of Corporate Finance