Cost-efficient Performance-Vesting Equity

摘要

We analyze the incentive effects of the Performance-Vesting Equity (PVE) component of executive pay that is characterized by zero exercise price and performance-contingent vesting. We demonstrate how PVE with upward-sloping convex/concave vesting curves can be a more efficient risk-sharing and incentive alignment device than strictly convex stock options. (C) 2019 Published by Elsevier B.V.