David Larcker

Research Statement

Professor Larcker’s research focuses on executive compensation, corporate governance, and managerial accounting. His work examines the choice of performance measures and compensation contracts in organizations. He has current research projects on the valuation implications of corporate governance, the impact of proxy advisory firms on shareholder proxy voting and modeling the cost of executive stock options.

Bio

Professor Larcker presently holds the James Irvin Miller Professorship. He is the director of the Corporate Governance Research Initiative at the Stanford Graduate School of Business and senior faculty of the Arthur and Toni Rembe Rock Center for Corporate Governance at Stanford University. Professor Larcker was previously the Ernst & Young Professor of accounting at the Wharton School of the University of Pennsylvania and Professor of accounting and information systems at the Kellogg Graduate School of Management at Northwestern University. He received his PhD in Business from the University of Kansas and his BS and MS in Engineering from the University of Missouri- Rolla.

He is on the editorial boards of the Journal of Accounting and Economics, Journal of Accounting Research, Accounting, Organizations and Society, Journal of Accounting and Public Policy, Journal of Applied Corporate Finance. Professor Larcker received the Notable Contribution to Managerial Accounting Research in 2001.

Academic Degrees

• PhD, University of Kansas, 1978
• MS, University of Missouri-Rolla, 1974
• BS, University of Missouri-Rolla, 1972

Academic Appointments

• At Stanford University since 2005
• Ernst & Young Professor of Accounting, The Wharton School, University of Pennsylvania, 1985-2005
• Assistant Professor - Professor, J.L. Kellogg Graduate School of Management, Northwestern University, 1978-1985

Awards and Honors

• Winnick Family Faculty Fellow, Stanford GSB, 2013-2014
• Notable Contribution to Managerial Accounting Research, 2001
• PhD Faculty Distinguished Service Award, Stanford GSB, 2010

Teaching

Degree Courses

2018-19

ACCT 523: Board Governance

This course is focused on helping students understand the role boards and board members play in corporate governance and the lives of businesses large and small. This case-driven course is designed to help students who plan to serve on boards as...

2017-18

ACCT 317: Managerial Accounting: Performance Measurement, Compensation, and Governance

The course will examine the academic and professional controversies surrounding corporate governance and executive compensation. A basic framework will be developed to integrate the many important dimensions of corporate governance in the U.S....

ACCT 523: Board Governance

This course is focused on helping students understand the role boards and board members play in corporate governance and the lives of businesses large and small. This case-driven course is designed to help students who plan to serve on boards as...

2016-17

ACCT 317: Managerial Accounting: Performance Measurement, Compensation, and Governance

The course will examine the academic and professional controversies surrounding corporate governance and executive compensation. A basic framework will be developed to integrate the many important dimensions of corporate governance in the U.S....

ACCT 523: Board Governance

This course is focused on helping students understand the role boards and board members play in corporate governance and the lives of businesses large and small. This case-driven course is designed to help students who plan to serve on boards as...

Executive Education & Other Non-Degree Programs

• Directors’ Consortium Learn leading-edge strategies, frameworks, and best practices for making complex and crucial board decisions in uncertain times.

Other Teaching

Corporate Governance Research Initiative

Arthur and Toni Rembe Rock Center for Corporate Governance at Stanford University

In the Media

A new way to cut drug prices? Make Big Pharma show what it spends to bring drugs to market

Chicago Tribune, June 20, 2016

Profits pave way to record CEO pay in Arizona

The Arizona Republic, June 3, 2016

Tribune Publishing changing its name

Boston Globe, June 3, 2016

Dealing with CEO misconduct

LiveMint, May 11, 2016

Determining CEO remuneration

Economia, May 6, 2016

Sharing the news when a CEO gets sick

Washington Post, July 3, 2014

Has Coca-Cola Forged a New Path in Executive Pay?

Bloomberg TV, June 18, 2014

Riches for Regeneron Pharmaceuticals

Crain's New York Business, June 15, 2014

Add COOs to the Endangered Species List

The Wall Street Journal, June 13, 2014

Business jargon: Squaring the circle

BBC News, June 3, 2014

Long-Term Orientated Investors May Boost Performance [STUDY]

Value Walk, June 2, 2014

Rules shake-up and the law of unintended consequences

Financial Times, June 1, 2014

The Morning Risk Report: Firms See Value Opportunity in Shareholder Base

The Wall Street Journal, May 22, 2014

The Right Way to Pay

Forbes, June 11, 2009

More Outside Directors Taking Lead in Crises

Wall Street Journal, April 19, 2007

America's CEO Pay May Soon Face Squeeze

The Christian Science Monitor, February 4, 2007

Insights by Stanford Business

writtenAnother Netflix Disruption: A Transparent Board

May 2, 2018

How the company that overhauled the entertainment industry created a new model of corporate governance.

writtenLearning From Uber’s Mistakes

January 26, 2018

What fast-growing startups — and their boards — must understand about building culture.

writtenIs Your CEO Irreplaceable?

October 6, 2017

A new survey highlights a tough CEO talent pool and which business leaders would be nearly impossible to replace.

infographicDo Corporate Boards Pick the Best CEOs?

January 6, 2017

Research shows what happens to succession winners and losers.

writtenHow Bankers with Political Connections Benefited from TARP

November 7, 2016

Researchers find connected bankers benefited by trading shares in their banks before government cash infusions.

writtenAre CEOs Overpaid?

February 17, 2016

A new survey shows Americans find flaws with executive compensation.

writtenWho Runs Silicon Valley Boards?

January 27, 2016

It’s an insular group, but with a couple surprises.

writtenWhat Is It Like to Be Owned by Warren Buffett?

October 29, 2015

A new survey reveals Berkshire’s management style.

writtenSeven Myths of Boards of Directors

October 12, 2015

Should the chairman always be independent? Do CEOs actually make good directors?

writtenHow to Be a Better Nonprofit Board Member

July 10, 2015

Apply the fundamentals of corporate governance to charitable work.

writtenDavid Larcker: Nonprofit Boards Fall Short

April 22, 2015

A new survey shows many lack skills, engagement to effectively oversee organizations.

writtenEven the Experts are Dissatisfied with CEO Pay Disclosure

February 17, 2015

Investors say proxy statements are too long and too difficult to read.

writtenHow to Write the Ideal Proxy

February 17, 2015

Stanford scholars explain what investors need in order to understand companies’ annual statements.

infographicShould Your Board’s Audit and Compensation Committees Overlap?

January 23, 2015

Researchers show the pros and cons to this arrangement.

writtenThree Reasons Outgoing CEOs Shouldn’t Pick Their Replacements

November 20, 2014

Not every CEO can spot a winner. Here’s what a board should consider.

writtenResearchers: The Power of Proxy Advisory Firms

January 13, 2014

Two experts on corporate governance say the firms’ influence “may not be for the better, as far as shareholder value is concerned.”

writtenResearchers: Where Do You Draw the Line Between Trust and Regulation?

September 20, 2013

David Larcker and Brian Tayan explain why building trust in an organization pays off.

writtenDavid Larcker: “Lonely at the Top” Resonates for Most CEOs

July 31, 2013

Nearly two-thirds of CEOs do not receive outside leadership advice, but nearly all want it.

writtenDavid Larcker: Regulations Are No Quick Fix for Corporate Failures

July 24, 2013

In their latest book, corporate governance experts assess which governance practices really work.

writtenNew CEO and Board Research from Stanford and The Miles Group

May 22, 2013

In grading CEO performance, financials still dominate.

writtenDavid Larcker: Should the CEO Role Be Separated from the Chairman?

May 16, 2013

Whether shareholders benefit depends more on context than on corporate structure.

writtenThe Executive Social Media Gap

October 25, 2012

A new study reveals a disconnect between companies' understanding of social media and the actions they are taking to apply it to their business.

written7 Myths of Executive Compensation

June 1, 2011

Corporate governance experts from Stanford GSB say criticism of CEO pay might be off the mark.

writtenCorporate Governance Book Explores How Boards Can Govern Better

May 19, 2011

"Corporate Governance Matters" by Professor David Larcker and Brian Tayan provides a practical framework for organizational decisions.

writtenDavid Larcker: Is That CEO Telling the Truth?

August 1, 2010

Researchers find that speech patterns and words offer clues about whether an executive is being honest during a conference call.

writtenResearch: CEO Succession Planning Lags Badly

June 1, 2010

A new survey says more than half of companies today could not immediately name a successor to their CEO should the need arise.

writtenHow Good Are Commercial Corporate Governance Ratings?

September 1, 2009

Research casts doubt on the value and validity of the ratings of governance advisory firms.

writtenExcessive Executive Pay Makes Headlines, But So What?

April 1, 2008

A study shows that media clamor over high executive compensation makes virtually no difference in company behavior.