{"id":7801,"date":"2019-06-11T09:02:49","date_gmt":"2019-06-11T07:02:49","guid":{"rendered":"https:\/\/www.uni.lu\/fr\/events\/pay-for-future-returns\/"},"modified":"2019-06-11T09:02:49","modified_gmt":"2019-06-11T07:02:49","slug":"pay-for-future-returns","status":"publish","type":"events","link":"https:\/\/www.uni.lu\/fr\/events\/pay-for-future-returns\/","title":{"rendered":"Pay for Future Returns"},"content":{"rendered":"<section class=\"wp-block-unilux-blocks-free-section section\"><div class=\"container xl:max-w-screen-xl\"><p>Is managerial compensation sensitive to future performance or only to realized returns? We show that salary raises of U.S. American CEOs predict positive stock returns in the year after. The wealth e ffect of an average raise is $1.6 million, implying a wealth increase of $0.28 million per 1% stock price increase in the next year. This compares to an equity delta of $0.71 million. We verify in 649 hand-collected CEO employment contracts that salary raises are relevant outputs of compensation reviews and link the provisions to actual raises. Our results are consistent with implicit contracting to reward contribution to future performance.<\/p><\/div><\/section>","protected":false},"excerpt":{"rendered":"<p>Is managerial compensation sensitive to future performance or only to realized returns? We show that salary raises of U.S. American CEOs predict positive stock returns in the year after. The wealth e ffect of an average raise is $1.6 million, implying a wealth increase of $0.28 million per 1% stock price increase in the next year. This compares to an equity delta of $0.71 million. We verify in 649 hand-collected CEO employment contracts that salary raises are relevant outputs of compensation reviews and link the provisions to actual raises. Our results are consistent with implicit contracting to reward contribution to future performance.<\/p>\n","protected":false},"author":0,"featured_media":7802,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"featured_image_focal_point":[],"show_featured_caption":false,"ulux_newsletter_groups":"","uluxPostTitle":"","uluxPrePostTitle":"","_trash_the_other_posts":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"event_start_date":"2019-07-04 12:30:00","event_end_date":"2019-07-04 13:45:00","event_speaker_name":"Moqi Groen-Xu - London School of Economics","event_speaker_link":"","event_is_online":false,"event_location":"JFK Building\r\n29, Boulevard Kennedy\r\nL-1855 Luxembourg\r\nGround Floor, Nancy-Metz Room","event_street":"","event_location_link":"","event_zip_code":"","event_city":"","event_country":"LU"},"events-topic":[309],"events-type":[],"organisation":[116,101,226],"authorship":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pay for Future Returns - Universit\u00e9 du Luxembourg<\/title>\n<meta name=\"description\" content=\"Is managerial compensation sensitive to future performance or only to realized returns? We show that salary raises of U.S. American CEOs predict positive stock returns in the year after. The wealth e ffect of an average raise is $1.6 million, implying a wealth increase of $0.28 million per 1% stock price increase in the next year. This compares to an equity delta of $0.71 million. We verify in 649 hand-collected CEO employment contracts that salary raises are relevant outputs of compensation reviews and link the provisions to actual raises. Our results are consistent with implicit contracting to reward contribution to future performance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.uni.lu\/fr\/events\/pay-for-future-returns\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pay for Future Returns\" \/>\n<meta property=\"og:description\" content=\"Is managerial compensation sensitive to future performance or only to realized returns? We show that salary raises of U.S. American CEOs predict positive stock returns in the year after. The wealth e ffect of an average raise is $1.6 million, implying a wealth increase of $0.28 million per 1% stock price increase in the next year. This compares to an equity delta of $0.71 million. We verify in 649 hand-collected CEO employment contracts that salary raises are relevant outputs of compensation reviews and link the provisions to actual raises. Our results are consistent with implicit contracting to reward contribution to future performance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.uni.lu\/fr\/events\/pay-for-future-returns\/\" \/>\n<meta property=\"og:site_name\" content=\"UNI FR\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/uni.lu\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/11\/2026\/03\/03120045\/UNIV_SM-Profile_1600x1600px-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"2560\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.uni.lu\/fr\/events\/pay-for-future-returns\/\",\"url\":\"https:\/\/www.uni.lu\/fr\/events\/pay-for-future-returns\/\",\"name\":\"Pay for Future Returns - Universit\u00e9 du Luxembourg\",\"isPartOf\":{\"@id\":\"https:\/\/www.uni.lu\/fr\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.uni.lu\/fr\/events\/pay-for-future-returns\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.uni.lu\/fr\/events\/pay-for-future-returns\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/11\/2019\/06\/pay_for_future_returns.jpg\",\"datePublished\":\"2019-06-11T07:02:49+00:00\",\"dateModified\":\"2019-06-11T07:02:49+00:00\",\"description\":\"Is managerial compensation sensitive to future performance or only to realized returns? 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