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We investigate the impact of changes in states' anti-takeover legislation on executive compensation. We find both pay for performance sensitivities and mean pay increase for the firms affected by the legislation (relative to a control group). These findings are partially consistent with an...
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: reducing the opportunity for managers to transfer value to equityholders from creditors via strategic default, and reducing the …
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managers. We question this view within its own analytical framework by studying, in a principal-agent model, the effects of … diversion overlooks a significant cost of such behavior. Many common modes of compensation can provide managers with incentives …
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Firms are more complicated than standard principal-agent theory allows: firms have assets-in-place; firms endure … through time, allowing for the possibility of replacing a shirking manager; firms have many managers, constraining the amount …
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This paper reviews the theoretical and empirical literature on executive compensation. We start by presenting data on the level of CEO and other top executive pay over time and across firms, the changing composition of pay; and the strength of executive incentives. We compare pay in U.S. public...
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executive officers. However, firms are run by teams of managers, and a theory of the firm should also explain the distribution …
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