You are here

Generous stock options linked to product recalls

Study shows if abundant options lead CEOs to be more aggressive, it may cause more mistakes and thus affect consumers.
Saturday, September 19, 2015 - 05:50
BT_20150919_OPTIONS19_1887009.jpg
KEY INDICATORS: The study looked at the size of options in proportion to a CEO's total pay in some healthcare-product and consumer-staple companies and found that recalls tended to be more prevalent at firms with higher option percentages.
BT_20150919_OPTIONS19_1887009.jpg
KEY INDICATORS: The study looked at the size of options in proportion to a CEO's total pay in some healthcare- product and consumer-staple companies and found that recalls tended to be more prevalent at firms with higher option percentages.

OUTSIZE executive pay packages have frequently been a flashpoint for stockmarket investors. Lavish executive compensation at publicly traded companies should be a significant concern for consumers, too.

That's the message of a new study by three academics at the University of Notre Dame