Cost-efficient Performance-Vesting Equity

C-Tier
Journal: Economics Letters
Year: 2019
Volume: 182
Issue: C
Pages: 37-39

Authors (4)

Skovoroda, Rodion (not in RePEc) Bruce, Alistair (not in RePEc) Buck, Trevor (not in RePEc) Gregory-Smith, Ian (Newcastle University)

Score contribution per author:

0.251 = (α=2.01 / 4 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze the incentive effects of the Performance-Vesting Equity (PVE) component of executive pay that is characterized by zero exercise price and performance-contingent vesting. We demonstrate how PVE with upward-sloping convex/concave vesting curves can be a more efficient risk-sharing and incentive alignment device than strictly convex stock options.

Technical Details

RePEc Handle
repec:eee:ecolet:v:182:y:2019:i:c:p:37-39
Journal Field
General
Author Count
4
Added to Database
2026-01-25