Five things to know:
1. The study examined data on compensation packages for 134 CEOs at publicly traded insurance companies from 2001-16. Seventy-three insurance companies were studied by the Miami-based researchers.
2. The researchers found after the recession, the average size of bonuses fell by two-thirds.
3. However, stock award and nonequity incentives doubled. Additionally, option awards rose almost 70 percent higher than the pre-recession era.
4. The study authors determined this change tied compensation more closely to firm performance.
5. Deanne Butchey, PhD, a lecturer at FIU and an author of the study, concluded: “We found that the shift in executive compensation was a response to the crisis. We also found that when the CEO held a dual role, acting as also the chairman of the board, (s)he was better able to influence salary, bonuses, and long-term incentives. This influence declined in the post-crisis period.”
Read more here.
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