Executive remuneration and risk
DOI:
https://doi.org/10.5007/2175-8069.2022.e81436Keywords:
Remuneration, Executives, RiskAbstract
This study aims to identify the influence of executive compensation on the risk of publicly traded companies listed on B3 (Brazilian Stock Exchange). For this purpose, we collected data from 230 companies, from 2010 to 2019, which were subjected to regressions by unbalanced panel data, using the generalized systemic moments method (GMM-SYS). The results suggest that the total and average compensation, as well as the fixed salary, bonus and compensation for shares and options paid to executives increase the companies' accounting and market risk. The disparity between the highest and lowest salaries increases the market's perception of the risk levels of firms. In addition, performance, indebtedness, and aspects related to turnover, tenure and age of executives influence the risk of companies.
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