Executive compensation is determined in a competitive market, and small differences in skills lead to large variations in the compensation levels. While past research has predominantly focused on the distinction between general and specific managerial skills, little is known as to whether and...

In this paper, I examine determinants and trends in top executive compensation in Israeli publicly traded firms between the years 1995–2018. I find a large increase in executive compensation in the earlier period of the sample culminating in 2007, especially in financial firms. Between 2008...

System governing boards fulfill roles as both regulators and protectors for their multiple constituent campuses. While centralized control provides many benefits to institutional members, such advantages are also be accompanied by limitations upon campuses to pursue expanded missions, fully...

This paper illustrates why some firms hire compensation consultants while others do not, and the implications for CEO compensation. We consider a matching model of firms and CEOs, in which firms are governed by effective boards that act on behalf of shareholders, non-conflicting consultants...

The prevailing agency theory framework in executive compensation studies highlights the conflict of interest between managers and shareholders. Our study extends the literature by examining the incorporation of debt-related performance metrics (DPMs), such as credit ratings and debt-to-EBITDA...

The competitive target pay policy sets a target dollar number for total CEO compensation within a specified range of the amounts paid to a CEO’s peers chosen from similar sized firms in the same industry. If such a policy were widely adopted by compensation committees, we would observe a...

We present a natural field experiment on promoting pay equity through simple modifications to the salary review process involving 623 middle managers and 8,951 subordinate employees of a large technology firm.We first document a gender gap not only in salary levels but also in salary increases....