This paper studies how CEO pay and its composition is shaped by strategic factors related to the firm's capacity to generate rents and value, the uncertainty of its resource advantage, and the competitive interaction between firm stakeholders and top management. This is done using an analytical...

This paper examines the role of equity-based incentives in fostering cross-business-unit collaboration in multibusiness firms. We develop a formal agency model in which headquarters offers equity and profit incentives to business-unit managers with the objective of maximizing total expected firm...

Employees performing everyday tasks frequently acquire valuable new ideas and knowledge. Our formal analysis studies how organizations can benefit from employee-driven innovation by using incentives to overcome strategic risk from opportunism and governance. We use a game theory framework to...