Table 2 shows the results of the event history analysis
modelling the rate of LTIP adoption. Model 1 includes all
main effects and control variables. In general, the results
provide strong, statistically significant support for hypothesis
1: The greater the CEO's influence, as indicated by three of
the four measures of influence (CEO tenure, combined CEO and chair positions, and the portion of the board composed of outsiders appointed after the CEO), the higher the rate of
LTIP adoption. Hypothesis 3 is also strongly supported: Prior
performance (market returns and ROA) is significantly and
negatively related to firms' propensity to adopt an LTIP.