The authors start by showing that six factors-responsibility (i.e., position and company size), industry, pay inflation, business risk, performance and company pay policy-explain over 75% of the variation in the pay of top-five U.S. executives for a sample of 75,000 cases during the years...

SUBJECT AREAS: Economic profit, EVA, MVA, assessment of financial performance.CASE SETTING: France 1997; electrical distrubtion, industrial engineering equipment, and industrial control and automation.REQUESTS FOR COPIES: To receive a copy of this case please contact the following sources: In...

There is little agreement about either the effect of executive compensation on corporate performance or the best way to measure the strength of executive incentives. With little guidance from academic research, managers and directors continue to rely heavily on the percentage of pay "at risk" as...