Table 1

Sample selection and sample distribution

Panel A: Sample selection
Observations in COMPUSTAT from 2007 to 2016112,987
 Remove partial year observations(8,241)
 Observations missing cash compensation(84,906)
 CEOs' first and last year in office and observations missing CEO tenure(3,696)
 Observations missing auditor information(369)
 Observations missing stock return information(1,451)
 Observations missing financial or industry information(4,814)
Final sample9,510
Panel B: Sample distribution
Firm-year observation analysis
# of ObsPct
Discretionary bonus payments only8829.3%
Formula bonus payments only6,65970.0%
Discretionary bonus and formula bonus payments in the same year7678.1%
Neither discretionary bonus nor formula bonus payments in a year1,20212.6%
Total observations9,510100.0%
Discretionary bonus payments1,64917.3%
Formula bonus payments7,42678.1%
Year distribution
YearObservationsDiscretionary bonusPctFormula bonusPct
200791320422.3%70577.2%
200892018820.4%64770.3%
20091,00718518.4%69569.0%
20101,00521121.0%79879.4%
201197917618.0%77278.9%
201297318218.7%77379.4%
201396214515.1%79582.6%
201495613814.4%78582.1%
201589412313.8%72581.1%
20169019710.8%73181.1%
 9,5101,649 7,426 

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