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| Hans Bystrom |
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| ''Executive compensation based on asset values'' |
| ( 2012, Vol. 32 No.2 ) |
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| This paper describes how credit default swaps could be employed to create performance based
executive compensation portfolios that reflect the value of a firm's debt as well as equity; i.e. the
total value of all a firm's assets. We define so-called Asset Value Unit (AVU) compensation
portfolios that work both for executive- and non-executive pay schemes in financial as well as
non-financial firms. |
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| Keywords: executive pay; executive compensation; stock; credit default swap |
JEL:
G3 - Corporate Finance and Governance: General |
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| Manuscript Received : Jan 18 2012 | | Manuscript Accepted : May 18 2012 |
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