Ferdinand M. Vieider Does Compensation by Stock Options Induce Excessive Risk Appetite in Executives?
Ferdinand M. Vieider is the Head of the Junior Research Group ‘Risk and Development’ at Berlin Social Science Center (WZB) and Professor in Economics at the University of Reading (UK). In his research he focuses on development economics, behavioral economics, decision making under risk and uncertainty, and policy evaluation. He was an Excellence Fellow at Ludwig-Maximilians-University Munich and a ‘Franco Romani’ Fellow of the Luigi Einaudi Foundation (Rome, Italy).
Area of Research
Behavioral Economics, Development Economics
since 2015
Professor of Behavioural and Development Economics
University of Reading
Department of Economics
since 2014
Director
Climate and Development Evaluation Group C.I.C.
since 2012
Head of Junior Research Group “Risk and Development”
Berlin Social Science Centre (WZB)
2009-2010
Consultant
Climate Policy Initiative
2009-2010
CNRS Researcher
Université de Lyon
GATE
2006-2010
Contributor
News Briefings, Oxford Analytica
2007-2008
Visiting Scholar
University of California, Berkeley
Haas School of Business
2000-2001
Project Management
Cobalt Networks/Sun Microsystems
2009
PhD in Economics
Erasmus University Rotterdam
Econometric Institute
2003
Master of Science in Economics
CORIPE, Torino, Italy
2001
Bachelor and Master in Political Science and International Relations
LUISS Guido Carli, Rome, Italy
- Acta Psychologica
- American Economic Review
- Applied Psychology–An International Review
- Ecological Economics
- European Economic Review
- Experimental Economics
- Games and Economic Behavior
- Journal of Applied Social Psychology
- Journal of Economic Behavior and Organization
- Journal of Economic Psychology
- Journal of Economic Growth
- Journal of the European Economic Association
- Management Science
- Social Choice and Welfare
- Theory & Decision
- World Development
Fellowships
- Excellence Fellow, LMU Munich, Germany (2010-2012)
- “Franco Romani” Fellow, Luigi Einaudi Foundation, Rome, Italy (2003-2004)
- Fulbright scholarship, later declined in favor of a PhD position in Amsterdam/Rotterdam (2004)
- German Research Foundation (DFG) for the construction of a panel dataset in southern India (2013)
- Thyssen-Krupp foundation for the organization of the workshop “Fertile Fields in Development: Randomized Trials versus Individual Preferences” (2013)
- WZB as start-up money for the construction of a large household panel in India (2013)
- Swedish Research Council as part of a research team for the investigation of adaptation to climate change in Central America (with P. Martinsson & F. Alpizar) (2011)
- Research funds from the Excellence Initiative, LMU Munich, for a cultural comparison of risk attitudes (renewal) (2011)
- Economy and Environment Program for Southest Asia as part of a research team on flooding risk (with P.K. Nam & P. Martinsson) (2011)
- Research funds from the Excellence Initiative, LMU Munich, for a cultural comparison of risk attitudes (2010)
In the laboratory experiment presented in this video, experimental CEOs were compensated either through stock options or restricted company stock. It shows that stock options induce excessive risk-taking in some cases and that company performance is generally better under compensation through restricted company stock. As FERDINAND M. VIEIDER points out, the main determinant of risk-taking under compensation through stock options was found to be the personal asset position of the experimental CEO.
LT Video Publication DOI: https://doi.org/10.21036/LTPUB10099
Risk Taking of Executives under Different Incentive Contracts: Experimental Evidence
- Mathieu Lefebvre and Ferdinand M. Vieider
- Journal of Economic Behavior and Organization
- Published in 2013
Risk Taking of Executives Under Different Incentive Contracts: Experimental Evidence
- Lefebvre, Mathieu; Vieider, Ferdinand M.
- Unpublished
- Published in 2013
Chicago
