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Performance Incentives Within Firms : The Effect of Managerial Responsibility

Aggarwal, Rajesh K. - 1999

executive officers. However, firms are run by teams of managers, and a theory of the firm should also explain the distribution … of incentives and responsibilities for other members of the top management team. An extension of the standard principal … responsibility. The aggregate pay-performance sensitivity of the top management team is quite substantial, at $30.24 per thousand …

Persistent link: https://www.econbiz.de/10012471450

Executive Compensation : Six Questions that Need Answering

Abowd, John M. - 1999

In this article, we focus on how recent research advances can be used to address the following six questions: (1) How much does executive compensation cost the firm? (2) How much is executive compensation worth to the recipient? (3) How well does executive compensation work? (4) What are the...

Persistent link: https://www.econbiz.de/10012471670

Valuing the Reload Features of Executive Stock Options

Huddart, Steven - 1999

Under Statement of Financial Accounting Standards No. 123, the grant date value of executive stock options excludes the value of any reload feature because, at the time of writing the standard in 1995, the Financial Accounting Standards Board believed it was not feasible to value a reload...

Persistent link: https://www.econbiz.de/10012471780

Managerial Incentive Problems : A Dynamic Perspective

Holmstrom, Bengt - 1999

The paper studies how a person's concern for a future career may influence his or her incentives to put in effort or make decisions on the job. In the model, the person's productive abilities are revealed over time through observations of performance. There are no explicit output contingent...

Persistent link: https://www.econbiz.de/10012471936

CEO Incentives and Firm Size

Baker, George P. - 1998

What determines CEO incentives? A confusion exists among both academics and practitioners about how to measure the strength of CEO incentives, and how to reconcile the enormous differences in pay sensitivities between executives in large and small firms. We show that while one measure of CEO...

Persistent link: https://www.econbiz.de/10012471944

The Pay to Performance Incentives of Executive Stock Options

Hall, Brian J. - 1998

Detailed data about stock option contracts are used to measure and analyze the pay to performance incentives of executive stock options. Two main issues are addressed. The first is the pay to performance incentives created by the revaluation of stock option holdings. The findings suggest that if...

Persistent link: https://www.econbiz.de/10012472136

Stock Repurchases and Incentive Compensation

Jolls, Christine - 1998

coincided with an increasing reliance on stock options to compensate top managers, and stock options encourage managers to …

Persistent link: https://www.econbiz.de/10012472338

High Water Marks

Goetzmann, William N. - 1998

Incentive fees for money managers are frequently accompanied by high-water mark provisions that condition the payment … performance fees are valuable to money managers, and conversely, represent a claim on a significant proportion of investor wealth … a hedge fund management company …

Persistent link: https://www.econbiz.de/10012472395

Are CEOs Really Paid Like Bureaucrats?

Hall, Brian J. - 1997

A common view of CEO compensation is that there is essentially no correlation between firm performance and CEO pay. This calls into question an important component of effective corporate governance. This zero correlation' belief is based on the widely cited result that CEO wealth rises by only...

Persistent link: https://www.econbiz.de/10012472597

Executive Compensation, Strategic Competition, and Relative Performance Evaluation : Theory and Evidence

Aggarwal, Rajesh - 1996

. We derive the optimal compensation contracts for managers and demonstrate that the use of high-powered incentives will be … limited by the need to soften product market competition. In particular, when managers can be compensated based on their own …

Persistent link: https://www.econbiz.de/10012473194