Essays On CEO Compensation: New Evidence On The Managerial-Power Vs. Optimal Contracting Debate

This dissertation analyzes the effect of market analysts’ expectations of share prices (price targets) on executive compensation. It examines how well the estimated effects of price targets on compensation fit with two competing views on determining executive compensation: the arm’s length bargaining model, which assumes that a board seeks to maximize shareholders’ interests, and the managerial power model, which assumes that a board seeks to maximize managers’ compensation (Bebchuk et al. 2005). The first chapter documents the pattern of CEO pay from fiscal year 1996 to 2010. The second chapter analyzes the Institutional Broker Estimate System Detail History Price Target data file, which that reports analysts’ price targets for firms. I show that the number of price target announcements is positively associated with company share price’s volatility, that price targets are predictive of changes in the value of stocks, and that when analysts announce positive (negative) expectations of future stock price, share prices change in the same direction in the short run. The third chapter analyzes the effect of price targets on executive compensation. I find that analysts' price targets alter the composition of executive pay between cash-based compensation and stock-based compensation. When analysts forecast a rise (fall) in the share price for a firm, the compensation package tilts toward stock-based (cash-based) compensation. The substitution effect is stronger in companies that have weaker corporate governance. The fourth chapter explores the effect of the introduction of the Sarbanes-Oxley Act (SOX) in 2002 and its reinforcement in 2006 on the options granting process. I show that the introduction of SOX and its reinforcement eliminated the practice of backdating options but increased “spring-loading” of option grants around price targets announcements. Overall, the dissertation shows that price targets provide insights into the determinants of executive pay in favor of the managerial power model.

Power converters in WBG device technology for automotive applications and characterization setups for GaN power transistors

This PhD dissertation envisages the design of innovative power converters exploiting WBG devices to get state-of-the-art performance in products intended for industrial applications of automotive field. The collaborations with different specialized companies, provided the opportunity to access commercially-available state-of-the-art SiC and GaN technologies and the possibility to realize innovative converter prototypes. Concerning SiC technology, the complete design of a $350kW$ Battery Emulator instrument in collaboration with a company leader in the automotive testing sector, was carried out from scratch exploiting state-of-the-art SiC power-modules, planar magnetics and top-notch MCU technologies. Discrete high-voltage GaN switches were exploited in the Power Supplies design for automotive charger application to target improved performances compared to the market state-of-the-art. Specifically, two high-efficiency prototypes, an AC/DC converter and a DC/DC converter of $7.5kW$, have been realized for this purpose. To further investigate the characteristics of state-of-the-art GaN power devices two measurement set-ups have been designed. In particular, the trapping phenomenon causing the collapse of drain current during ON-state with a consequent degradation of ON-resistance has been analyzed.