Corporate spinoffs and executive compensation

Law, Justin; Yu, Wayne

doi:10.1186/s11782-018-0043-9

Frontiers of Business Research in China

Table 2 Descriptive statistics

From: Corporate spinoffs and executive compensation

A. CEO Compensation and Performance Variables
Salary and Bonus
Mean	1187.78	1213.81	1231.31	1219.18	1268.23	1335.85
Median	1077.11	1058.08	965	964.93	1148.51	1148.57
StdDev	844.25	930.27	998.05	918.12	888.13	1097.34
Minimum	141.66	104.80	36.36	74	74	119.88
Maximum	4109.9	4399.9	4030	4282.5	3725	6790
N	67	70	73	74	71	66
Stock Options
Mean	603.60	1574.27	1449.12	2311.22	1927.23	2785.05
Median	47.65	312.73	191.67	578.03	541.4	743.79
StdDev	924.12	3315.43	4577.57	6234.45	3082.39	7604.73
Minimum	0	0	0	0	0	0
Maximum	3666.38	16,068.52	38,000	40,000	16,172	54,189
N	65	70	72	73	71	65
Restricted Stock
Mean	110.63	190.13	210.50	279.55	340.66	417.54
Median	0	0	0	0	0	0
StdDev	314	1141.29	714.63	1334.87	1027.58	1607.9
Minimum	0	0	0	0	0	0
Maximum	1750	9394.34	3849.5	10,476.6	5520.04	11,800
N	67	70	73	74	71	66
Other Compensation
Mean	81.99	137.64	178.54	151.84	185.59	209.80
Median	21.39	32.42	42.31	47.95	70.43	46.50
StdDev	151.97	274.36	381.96	294.79	440.94	466.57
Minimum	0	0	0	0	0	0
Maximum	826.33	1762.82	2188.43	2004.94	3097.38	2938.93
N	68	70	73	74	71	66
Stock Return
Mean	0.219	0.212	0.263	0.255	0.107	0.239
Median	0.147	0.179	0.173	0.134	0.104	0.083
StdDev	0.379	0.410	0.454	0.578	0.387	0.930
Minimum	−0.47	−0.72	−0.40	−0.72	−0.70	−0.79
Maximum	1.59	1.90	2.05	3.10	1.50	6.83
N	71	74	75	75	75	69
B. Corporate Governance Variables
Component 1 – Board Structure
Percentage of Independent Directors
Mean	0.579	0.620	0.611	0.622	0.627	0.624
Median	0.615	0.688	0.667	0.667	0.646	0.667
StdDev	0.207	0.183	0.182	0.196	0.201	0.193
Minimum	0	0.143	0.143	0	0.111	0
Maximum	0.909	0.923	0.941	0.909	0.917	0.889
N	59	63	67	71	72	65
Percentage of Interlocked Directors
Mean	0.039	0.029	0.025	0.024	0.024	0.023
Median	0	0	0	0	0	0
StdDev	0.069	0.052	0.052	0.054	0.060	0.061
Minimum	0	0	0	0	0	0
Maximum	0.333	0.2	0.231	0.308	0.308	0.333
N	58	62	66	71	72	65
Percentage of Female Directors
Mean	0.074	0.080	0.079	0.077	0.080	0.089
Median	0.083	0.083	0.083	0.083	0.083	0.091
StdDev	0.075	0.068	0.070	0.068	0.071	0.072
Minimum	0	0	0	0	0	0
Maximum	0.3	0.231	0.25	0.273	0.3	0.273
N	59	63	67	71	72	65
	Year − 2	Year − 1	Year 0	Year + 1	Year + 2	Year + 3
CEO Power
Mean	1.32	1.38	1.35	1.37	1.46	1.32
Median	1	1	1	1	1.5	1
StdDev	0.68	0.68	0.71	0.73	0.79	0.74
Minimum	0	0	0	0	0	0
Maximum	3	3	3	3	3	3
N	59	63	66	70	70	63
Component 2 – Committee Independence
Percentage of Independent Directors in Audit Committee
Mean	0.82	0.83	0.84	0.85	0.87	0.84
Median	1	1	1	1	1	1
StdDev	0.23	0.22	0.19	0.24	0.23	0.26
Minimum	0	0	0.33	0	0	0
Maximum	1	1	1	1	1	1
N	57	61	64	70	71	63
Percentage of Independent Directors in Compensation Committee
Mean	0.80	0.83	0.85	0.86	0.87	0.88
Median	0.8	1	1	1	1	1
StdDev	0.24	0.26	0.26	0.26	0.25	0.22
Minimum	0	0	0	0	0	0
Maximum	1	1	1	1	1	1
N	57	59	61	69	69	61
Component 3 – Board and Committee Meetings
Board Meetings
Mean	7.71	7.31	8.16	7	7.14	7.18
Median	8	7	8	7	6	6
StdDev	2.68	2.8	3	2.22	3.1	2.54
Minimum	1	1	1	1	1	1
Maximum	16	15	18	12	24	18
N	58	64	68	68	63	61
Audit Committee Meetings
Mean	3.38	3.46	3.26	3.35	3.22	3.48
Median	3	3	3	3	3	3
StdDev	1.40	1.43	1.57	1.47	1.30	1.78
Minimum	1	0	0	0	1	1
Maximum	7	7	8	8	7	11
N	58	63	66	66	64	61
Compensation Committee Meetings
Mean	4.63	4.92	4.79	4.45	4.47	4.39
Median	4	5	5	4	4	4
StdDev	2.02	1.97	2.36	1.92	2.13	2.05
Minimum	1	1	0	1	1	1
Maximum	9	9	13	9	13	10
N	56	59	63	66	62	59
Component 4 – Institutional Ownership
Mean	0.491	0.521	0.538	0.567	0.573	0.580
Median	0.535	0.568	0.571	0.603	0.633	0.632
StdDev	0.186	0.195	0.198	0.199	0.190	0.198
Minimum	0	0.059	0.049	0.044	0.039	0.057
Maximum	0.791	0.935	1	0.993	0.846	0.900
N	72	72	73	73	70	64

Descriptive statistics of the CEO compensation components, performance variable and spinoff size for the spinoff sample from two years before spinoff to three years after spinoff. Year 0 denotes the year of spinoff event. The spinoff parents’ CEO compensation statistics, performance statistics and governance measures statistics are shown in Section A and B respectively. The 4 components of CEO compensation: salary and bonus, option grants, restricted stocks, and other compensation are obtained from the Execucomp database or company proxy statement from the Direct Edger database in cases where the data is not available from Execucomp. CEO compensation is denoted in thousands of dollars. Stock return refers to the annual stock return for the firm’s fiscal year and is computed by compounding the monthly returns obtained from the CRSP database. Stock returns are denoted in percentages. Percentage of independent directors (directors who do not have business and family ties with the firm and have not been employed by the firm for the last 3 years), percentage of interlocked directors (outside directors with their companies’ boards served by an inside officer of the firm), and percentage of female directors are expressed as a fraction of total board members. CEO Power is a score formed by adding three indicator variables: CEO is the chair of the board, CEO is the founder of the firm and CEO is the only insider of the board. Board and committee meetings are the number of board, audit committee and compensation committee meetings held per year. Percentage of independent directors in audit, compensation and nominating are expressed as a fraction of the total committee members. Institutional investors’ ownership is expressed as a fraction of total shares outstanding. Institutional investors’ share ownership is obtained from Thomson Reuters Institutional (13F) Holdings (formerly known as CDA/Spectrum database). All other governance variables are obtained from the RiskMetrics Directors database (formerly known as Investor Responsibility Research Center (IRRC) Takeover Defense database) or directly from the proxy statements in the Direct Edger database. Variation in sample size is due to data availability

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