Researchers study connection between CEO pay options and fraud
Friday, August 4, 2006
Dr. Matt Gilley
For biographical information on Gilley click here .
Researchers study connection between CEO pay options and fraud
A website for one of the world's leading publications on business, politics, and international affairs is spotlighting the findings of an Oklahoma State University researcher on the relationship between fraud and how CEOs are compensated.
Economist.com is reporting on research by Dr. Matt Gilley of OSU and his partners in Texas and Wisconsin, who found that giving chief executives stock options is not always the best idea.
Of103 firms studied, the research found that chief executives who did not also chair the board of directors and whose board members did not hold stock options were least likely to be implicated in fraudulent reporting. The research also found that the older a chief executive, the less likely they were to engage in fraudulent behavior.
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