With many companies undergoing financial pressure these days, it’s no surprise that CEOs have plenty to worry about. A recent seminar organized by the Department of Management and International Business at Florida International University (FIU) provided a forum for two faculty members from the University of Miami to shed some scholarly light on the topic.
According to research by Qiang Kang, Finance Department, and Oscar Mitnik, Economics Department, CEOs of distressed firms experience significant reductions in total compensation during periods of financial stress, the bulk of the reduction resulting from the decline in the value of stock option grants.
Approximately 20 people heard their talk, titled “CEO Power and Compensation in Financially Distressed Firms,” on September 11, 2009.
“Although many have recently questioned the compensation of CEOs and monitoring by board members, this research shows that there is room for hope because stakeholders are scrutinizing and limiting CEOs’ power,” said Aya Chacar, the College of Business Administration faculty member who organizes the series. “For example, CEOs are less likely to also serve as chair or as members on the compensation committee.”
Series supports university’s focus on research, helps build the research community.
The seminar series, which began in the spring of 2007, underscores FIU’s commitment to being a public research institution—giving faculty members a forum in which to share their research and enabling faculty members and PhD students to interact, which strengthens the research culture within the business school.
Karen Paul and Moriah Meyskens will present on “The Evolution of Corporate Social Reporting Practices in Mexico” on September 25, 2009 and William Newburry on October 9, 2009 on a topic to be determined. Chockalingam Viswesvaran, a member of FIU’s psychology department, will speak about emotional intelligence on November 6, 2009. The programs take place from 10:45 a.m.-12:15 p.m. in the College of Business Complex 152.