Performance-vested Stock Options and Pay-Performance Sensitivity

The paper investigates the incentive effects of performance-vested stock options (PVSOs) in aligning management interests with shareholder wealth. Performance targets attached to option vesting would prevent executives from receiving rewards from outcomes that are unaffected by their effort.Such targets align executive pay more closely with shareholder wealth.The degree of interest alignment is measured by pay-performance sensitivity (PPS).Using data on 4,238 executive-level observations for 1,383 executive directors in the largest 244 UK non-financial firms from 1999 to 2004, we find that the presence of PVSO schemes in executive-compensation contracts is associated with higher PPS, consistent with the idea that stronger incentives are provided by PVSOs.The empirical evidence also shows that PVSOs outperform unconditional stock options (TSOs) in providing incentives, since higher PPS is associated with the presence of PVSOs. Moreover, the results testify the role of vesting-target difficulty of PVSOs in the pay-performance relation.Specifically, difficult targets are associated with lower PPS levels, implying that too difficult targets negatively affect managers' choice of effort, that relatively lower effort is to be expected, and that the interests of managers will diverge from the interests of shareholders.stock options;pay-performance sensitivity;equity incentive

Hadronic Transition chi(c1)(1P) to eta(c) plus two pions at the Beijing Spectrometer BES and the Cornell CLEO-c

Hadronic transitions of the chi(cj)(1P) states have not been studied yet. We calculate the rate of the hadronic transition chi(c1)(1P) to eta(c) plus two pions in the framework of QCD multipole expansion. We show that this process can be studied experimentally at the upgraded Beijing Spectrometer BES III and the Cornell CLEO-c.Comment: 6 pages RevTex4(two-column). Version published in Phys. Rev. D 75, 054019 (2007

Say-on-Pay Votes:The Role of the Media

We investigate the association between the media coverage of firms' CEO pay packages and subsequent shareholder voting on say-on-pay resolutions, and find that negative media coverage is able to predict shareholder discontent over say on pay. When we divide media coverage into coverage in the financial and business press versus coverage in the general press, we find that shareholder voting on say-on-pay resolutions is mainly associated with the articles from the financial and business press. This suggests that the media cannot be considered a homogeneous information source that is equally able to predict shareholders' voting behaviors. As such, our findings have important implications for studies on the role of the media in corporate governance.</p

Inflating hollow nanocrystals through a repeated Kirkendall cavitation process.

The Kirkendall effect has been recently used to produce hollow nanostructures by taking advantage of the different diffusion rates of species involved in the chemical transformations of nanoscale objects. Here we demonstrate a nanoscale Kirkendall cavitation process that can transform solid palladium nanocrystals into hollow palladium nanocrystals through insertion and extraction of phosphorus. The key to success in producing monometallic hollow nanocrystals is the effective extraction of phosphorus through an oxidation reaction, which promotes the outward diffusion of phosphorus from the compound nanocrystals of palladium phosphide and consequently the inward diffusion of vacancies and their coalescence into larger voids. We further demonstrate that this Kirkendall cavitation process can be repeated a number of times to gradually inflate the hollow metal nanocrystals, producing nanoshells of increased diameters and decreased thicknesses. The resulting thin palladium nanoshells exhibit enhanced catalytic activity and high durability toward formic acid oxidation