The literature on chief executive officers (CEOs) established that economics and sociological rationales are both essential to understand the level and structure of CEOs' compensation. Our thesis is that internal "transaction costs" or frictions override strictly economic criteria to determine...

We study a channel relationship in which manufacturer(s) use independent sales representatives (rep firms), which employ salespeople to do the actual selling. We show that commission-only payments by manufacturers to rep firms lead to suboptimal outcomes for the manufacturer relative to those...

In this research, we show that the interaction between territory allocation and sales force compensation—two key drivers of sales productivity—strongly affects the firm's profitability. We analyze an agency-theoretic model that jointly considers the degree of negative or positive correlation...