Gregoric, Aleksandra; Polanec, Saso; Slapnicar, Sergeja - LICOS Centre for Institutions and Economic Performance, … - 2008
This paper studies the impact of external reference values on managerial compensation contracts. We consider the effect … introduction of pay norms changed the reference values for CEOs and led to adjustment of executive compensation towards new … equilibrium. These pay norms affected pay in firms with actual compensation below and above reference values. Further we find that …