While much is made of the ills of “short-termism” in executive compensation, in reality very little is known empirically about the extent of short-termism in CEO compensation. This paper develops a new measure of CEO pay duration that reflects the vesting periods of different components of...

Extensive discussions of the inefficiencies of "short-termism" in executive compensation notwithstanding, very little is known empirically about the extent of such short-termism. This paper develops a novel measure of executive pay duration that reflects the vesting periods of different pay...

Competitive sorting models of the CEO labor market (e.g., Edmans, Gabaix and Landier (2009)) predict that differences in CEO productive abilities, or "talent", should be an important determinant of CEO pay. However, measuring CEO talent empirically represents a major challenge. In this paper, we...

We examine the effect of auditor expertise on managerial equity-based compensation. Consistent with theories that predict that firms will grant more equity-based compensation to their managers when financial statement manipulation is more likely to be detected, we find strong evidence that firms...

A purported dark side to powerful equity-based incentives is that they may induce the manager to manipulate stock prices by distorting information. Recent theories predict that firms will grant more equity-based incentives to their managers when the detection of such information manipulation is...