The Value and Incentives of Option-based Compensation in Danish Listed Companies

Ken Bechmann, Peter Løchte Jørgensen

Research output: Working paperResearch

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Abstract

Over the last decade the Danish corporate environment has experienced a significant increase in the use of option-based compensation (OBC). This and many other facts are documented in the present paper which provides the first insights into the characteristics of the option and warrant contracts issued by the complete sample of Danish companies listed on the Copenhagen Stock Exchange. A newly constructed database containing all publicly available information on details of Danish OBC contracts allows us to present, for example, results regarding contract values at an aggregated as well as at firm, personnel group, and individual level. The paper also contains a section which discusses and presents evidence on the incentive effects provided by the option-based compensation contracts adopted by Danish listed companies.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherInstitut for Finansiering, Copenhagen Business School
Number of pages29
ISBN (Electronic)8790705742
Publication statusPublished - 2003
SeriesWorking Papers / Department of Finance. Copenhagen Business School
Number2003-2
ISSN0903-0352

Keywords

  • Option-based compensation
  • Executive pay
  • Disclosure requirements
  • Valuation
  • Incentives

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