We investigate the role of Relative Performance Evaluation (RPE) theory in CEO pay and turnover using a product … affecting the firm and its peers) while evaluating CEO performance and that the extent of filtering increases with the number of …

We develop a measurement-error framework for assessing the quality of relative-performance metrics designed to filter … out the systematic component of performance, and analyze relative total shareholder return (rTSR)-the predominant metric … market participants use to isolate managers' idiosyncratic performance-chosen by boards to evaluate managers. Among firms …

with these numbers is that they are static and do not reflect how pay changes with performance. Activist fund ValueAct … relation between pay and performance?• Are large “minimum” payments indicative of managerial abuse?• What insights does this …

adopting a relative performance evaluation (RPE) plan, total and idiosyncratic risk are higher, and the correlation between … firm and industry performance is lower. The opposite is true for firms that adopt absolute performance evaluation (APE …) plans. Plans including accounting-based performance metrics and/or cash payouts have weaker risk-related incentives. The …

scope has a negative impact on performance on average. However, we find that firms whose expansion keeps them closer to the …

We introduce a new two-dimensional measure for the heterogeneity of performance within groups of economic units. This … measure accounts both, for the relative performance of the single units of groups and their relative size. We demonstrate that …

performance feedback provision and peer effects on individuals' performance. First, it discusses to which extent feedback on … absolute performance affects individuals' effort for cognitive or motivational reasons, and how evaluations can be distorted … strategically. Second, this paper highlights the positive and negative effects of feedback on relative performance and rank on …

performance. However, high purpose firms come in two forms: firms characterized by high camaraderie between workers and firms … higher future accounting and stock market performance, even after controlling for current performance, and that this relation … of their organization and the clarity in the path towards that purpose experience better performance …