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- Creators: Samuelson, Melissa
- Creators: Department of Physics
- Member of: Barrett, The Honors College Thesis/Creative Project Collection
- Status: Published
Description
Executive compensation is broken into two parts: one fixed and one variable. The fixed component of executive compensation is the annual salary and the variable components are performance-based incentives. Clawback provisions of executive compensation are designed to require executives to return performance-based, variable compensation that was erroneously awarded in the year of a misstatement. This research shows the need for the use of a new clawback provision that combines aspects of the two currently in regulation. In our current federal regulation, there are two clawback provisions in play: Section 304 of Sarbanes-Oxley and section 954 of The Dodd\u2014Frank Wall Street Reform and Consumer Protection Act. This paper argues for the use of an optimal clawback provision that combines aspects of both the current SOX provision and the Dodd-Frank provision, by integrating the principles of loss aversion and narcissism. These two factors are important to consider when designing a clawback provision, as it is generally accepted that average individuals are loss averse and executives are becoming increasingly narcissistic. Therefore, when attempting to mitigate the risk of a leader keeping erroneously awarded executive compensation, the decision making factors of narcissism and loss aversion must be taken into account. Additionally, this paper predicts how compensation structures will shift post-implementation. Through a survey analyzing the level of both loss- aversion and narcissism in respondents, the research question justifies the principle that people are loss averse and that a subset of the population show narcissistic tendencies. Both loss aversion and narcissism drove the results to suggest there are benefits to both clawback provisions and that a new provision that combines elements of both is most beneficial in mitigating the risk of executives receiving erroneously awarded compensation. I concluded the most optimal clawback provision is mandatory for all public companies (Dodd-Frank), targets all executives (Dodd-Frank), and requires the recuperation of the entire bonus, not just that which was in excess of what should have been received (SOX).
ContributorsLarscheid, Elizabeth (Author) / Samuelson, Melissa (Thesis director) / Casas-Arce, Pablo (Committee member) / WPC Graduate Programs (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12
Description
Given its impact on the accounting profession and public corporations, Sarbanes-Oxley Act of 2002(SOX) is a widely researched regulation among accounting scholars. Research typically focuses on the impact it has had on corporations, executives and auditors, however, there is limited research that illustrates the impact SOX may have on average Americans. There were several US criminal code sections that resulted from the passing of SOX. Statute 1519, which is often referred to as the "anti-shredding provision", penalizes anyone who "knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to" obstruct a current or foreseeable federal investigation. This statute, although intended to punish behavior similar to that which occurred in the early 2000s by corporations and auditors, has been used to charge people beyond its original intent. Several issues with the crafting of the statute cause its broad application and some litigation even reached the Supreme Court due to its vague wording. Not only is the statute being applied beyond the intent, there are other issues that legal scholars have critiqued it for. This statute is far from being the only law facing these issues as the same issues and critiques are found in the 14th amendment. Rewriting the statute seems to be the most effective way to address the concerns of judges, lawyers and defendants regarding the statute. In addition, Congress could have passed this statute outside of SOX to avoid being seen as overreaching if obstruction of justice related to documents was actually an issue outside of corporate fraud.
ContributorsGonzalez, Joana (Author) / Samuelson, Melissa (Thesis director) / Lowe, Jordan (Committee member) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
Description
The purpose of this creative project was to establish the foundation of an educational program that teaches financial literacy to the local homeless population. The name of this program is stillHUMAN. The project consisted of two parts, a needs analysis and a prototyping phase. The needs analysis was conducted at the Phoenix Rescue Mission Center, a faith-based homeless shelter that caters to male "clients", through written surveys and one-on-one interviews. Before interviewing the clients, the team acquired IRB approval as well as consent from the Center to carry out this study. These needs were then organized into a House of Quality. We concluded from Part 1 that we would need to create 3 - 7-minute-long video modules that would be available on an online platform and covered topics including professional development, budgeting, credit, and Internet literacy. In order to commence Part 2, each team member recorded a video module. These three videos collectively conveyed instruction regarding how to write a resume, use the Internet and fill out an application online, and how to budget money. These videos were uploaded to YouTube and shown to clients at Phoenix Rescue Mission, who were each asked to fill out a feedback survey afterwards. The team plans to use these responses to improve the quality of future video modules and ultimately create a holistic lesson plan that covers all financial literacy topics the clients desire. A website was also made to store future videos. The team plans to continue with this project post-graduation. Future tasks include creating and testing the a complete lesson plan, establishing a student organization at Arizona State University and recruiting volunteers from different disciplines, and creating an on-site tutoring program so clients may receive individualized attention. Once the lesson plan is demonstrated to be effective at Phoenix Rescue Mission, we plan to administer this lesson plan at other local homeless shelters and assess its efficacy in a non-faithbased and non-male environment. After a successful financial literacy program has been created, we aim to create lesson plans for other topics, including health literacy, human rights, and basic education. Ultimately stillHUMAN will become a sustainable program that unites the efforts of students and professionals to improve the quality of life of the homeless population.
ContributorsKim, Michael (Co-author) / Gulati, Guneet (Co-author) / Vanood, Aimen (Co-author) / Ganesh, Tirupalavanam (Thesis director) / Shrake, Scott (Committee member) / School of Mathematical and Statistical Sciences (Contributor) / School of Life Sciences (Contributor) / Department of Physics (Contributor) / Department of Psychology (Contributor) / Harrington Bioengineering Program (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
Society has formed certain stereotypes surrounding genders and the roles that they play in society based on the qualities that each gender is assumed to have (Lopez & Ensari, 2014; Eagly & Wood, 2012; Heilman, 2012). Leadership is seen as a masculine role because of the similar perceptions between what qualities men possess and what qualities leadership requires. (Koenig et al., 2011). Biases against women in leadership prevent women from successfully gaining high-level positions at the same rate as men, despite equal qualifications (Lopez & Ensari, 2014). There is great debate on how this problem can be resolved. On the one hand, trends toward institutional and policy changes in the 1970’s and 1980’s were intended to create greater equality and help women reduce bias in the workforce. More recently, however, the tone of the conversation has shifted. Books like Sheryl Sandberg’s “Lean In” have seen great popularity as they emphasize the role women have to combat bias through personal empowerment rather than waiting for the system to change. As a consequence of this shift in ideology, a possible shift has occurred in perceptions of where responsibility for change lies. This presents the question: Does exposure to empowerment literature increase perceptions of women’s responsibility to fix the gender inequality issue in the workplace?
ContributorsSchewe, Rachel (Author) / Samuelson, Melissa (Thesis director) / Hart, Wendy (Committee member) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05