研究期間：10208~10307;Pension benefits and deferred compensation combined represents a debt obligation owed by the company to the executive and constitutes the so-called “inside debt”, a debt-like component in the executive compensation package. The advocates of the rational use of inside debt suggest that the debt-like compensation aligns the manager’s incentive with debt holders’ and thus reduce the agency cost in debt. The opponents, however, argue that the use of inside debt captures the managerial power rather than optimal contract. In this study we examine whether firms actively manage the amount of inside debt and maintain it near the optimal level. Our evidence will shed light on the underlying motivation of the firms for granting executive compensation in a form of debt.