kaal:claim:2097160-040

An early trigger design for contingent convertible bonds in executive compensation enables earlier signaling of default risk, increases incentives for creditors and shareholders to monitor, and increases executives' incentives to lower risk-taking.

Source quote, verbatim
Contingent convertible bonds with an early trigger design enable earlier signaling of default risk; they provide increased incentives for monitoring by creditors and shareholders as well as incentives for executives to lower their risk-taking.282
From

Wulf A. Kaal, Contingent Capital in Executive Compensation (2012), VII. Conclusion, p. 69
https://ssrn.com/abstract=2097160 · source PDF

Cite as

Wulf A. Kaal, Contingent Capital in Executive Compensation (2012). SSRN: https://ssrn.com/abstract=2097160

Classification

designsupport: arguedcontingent-capitalrisk-and-incentivescompliancegovernance-designcorporate-governance

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