Doom or gloom? CEO stock options after Enron

摘要: This study finds a significant and pervasive decline but not an elimination of CEO optionbased compensation after the corporate governance scandals around 2000-2001 centered on executive option compensation. Some, all, drop is predicted by changes in characteristics firms, CEOs, boards directors, markets. In cross-section, change options positively related to firm size, growth opportunities, ownership large pension funds, experience negatively age, board "fair" value expensing options. The findings provide support for hypothesis that are affected optimal contracting considerations, power determinant options, and, some extent, differences perceived actual costs important. Overall, however, most able explain cross-sectional variation scandals.