Institutional Investors and CEO Compensation PDF

Dissemination and storage of regulated information are made by 1INFO. Putnam Investments is a privately owned investment management firm founded in 1937 by George Putnam, who established one of the first balanced mutual funds, The George Putnam Fund of Boston. Putnam is headquartered in Boston, Massachusetts and has offices in London, Tokyo, Frankfurt, Sydney, and Singapore. The firm was founded in 1937 by George Putnam who established one of the first balanced mutual institutional Investors and CEO Compensation PDF: The George Putnam Fund of Boston.

Författare: Jae Yong Shin.
Institutional investors have become increasingly important as equity holders in the U.S. financial market. This book investigates the relation between the structure of CEO compensation and the composition of firms‘ institutional ownership in terms of investment horizons and legal type. Consistent with regulators‘ and investors‘ concerns that myopic investment behavior by some institutional investors leads managers to fear an earnings disappointment, I provide evidence that in companies with more shares held by institutions with short-term investment horizons, executive compensation is structured with preference towards these short-term institutions‘ preferences (e.g., more use of stock options that do not need to be expensed and larger annual bonus penalties for missing quarterly earnings benchmarks). By documenting one potential consequence of firms‘ ownership structure that related to the various classes of institutional shareholders in term of investment horizons, this book should be of interest to regulators, investors, board of directors, and academicians who may need to identify and mitigate undue influences from short-sighted institutional investors.

Lawrence Lasser joined the company in 1969 and it became „one of the largest managers of mutual funds. In 1997, Putnam Investments established a connection with Nippon Life Insurance in Osaka, Japan, and its subsidiary Nissay Asset Management Company. Between 2003 and 2007 Haldeman initiated broad changes within the company. He created a new set of guiding principles for the company and reduced the company’s staff by 11 percent, including the elimination of 25 of the highest-paid executive positions. He reduced senior management compensation to half of what it was in 2000 and adjusted portfolio managers compensation to encourage more long term thinking and planning. In early 2004, the company admitted to allowing its portfolio managers and some investors to market time its funds.

110 million in fines and restitution to settle charges with the state and federal regulators. 40 million to settle charges made in 2003 that it „did not tell fund investors or directors about paying“ brokerage firms for recommending its mutual funds to clients. Afterward, some investors withdrew their funds. Efforts to rebuild the company paid off and in 2006, 48 percent of the Putnam’s mutual funds scored in the top 50 percent when compared with funds in their peer group, an increase of 8 percent from two years prior. 400,000 civil penalty to settle charges of improper trading of mutual fund shares according to the Securities and Exchange Commission. The two directors also agreed to a one-year suspension from any role as an investment advisor. They settled their charges without any admission or denial of guilt.