Dynamic Incentive Accounts
remainder in cash. The account features state-dependent rebalancing and time-dependent vesting. It is constantly rebalanced so that the equity fraction remains above a certain threshold; this threshold sensitivity is typically increasing over time even in the absence of career concerns. The account vests gradually both during the CEO's employment and after he quits, to deter short-termist actions before retirement.
Year of publication: |
2010
|
---|---|
Authors: | Sannikov, Yuliy ; Gabaix, Xavier ; Sadzik, Tomasz ; Edmans, Alex |
Institutions: | Society for Economic Dynamics - SED |
Saved in:
Saved in favorites
Similar items by person
-
Edmans, Alex, (2009)
-
Edmans, Alex, (2009)
-
Edmans, Alex, (2009)
- More ...