This study examines the explicit use of relative performance evaluation (RPE) in executive compensation contracts and the selection of RPE peers. Using S&P 1500 firms' first proxy disclosures under the SEC's 2006 executive compensation disclosure rules, we find that about 25 percent of our...

This study examines the explicit use of relative performance evaluation (RPE) in executive compensation contracts and the selection of RPE peers. Using S&P 1500 firms' first proxy disclosures under the SEC's 2006 executive compensation disclosure rules, we find that 25.44 percent of our sample...

This study examines whether the use of cash-flow-based performance metrics (CFM) in setting CEO compensation affects the design of loan contracts. Cash-flow-based performance evaluation can motivate managers to improve cash flows, which potentially enhances the firms’ debt repayment ability...