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We argue that the relationship between managerial pay-for-performance incentives and risk taking is procyclical. We study the relationship between incentives provided by stock-based compensation and firm risk for U.S. non-financial corporations over the two business cycles between 1992 and 2009....
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of bonus payments in the 2000s. We decompose the share of the total wage bill accounted for by bonuses into the shares of … base pay within the PRP sector. We show that there was some growth in the share of total pay accounted for by bonuses in … Britain in the mid-2000s. However this rise – and subsequent fluctuations since the onset of recession in 2008 – can be almost …
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of bonus payments in the 2000s. We decompose the share of the total wage bill accounted for by bonuses into the shares of … base pay within the PRP sector. We show that there was some growth in the share of total pay accounted for by bonuses in … Britain in the mid-2000s. However this rise - and subsequent fluctuations since the onset of recession in 2008 - can be almost …
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Between and within firms, work teams compete against each other and receive feedback on how well their team is performing relative to their benchmarks. In this paper we investigate experimentally how teams respond to relative performance feedback (RPF) at team level. We find that when subjects...
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