Fahlenbrach, Rüdiger (contributor) - 2008 - This draft: February 12, 2008
governance, the compensation contract helps better align the interests of
shareholders and the CEO.
JEL classification: G …
contracts represent one of a number of ways of aligning the incentives of managers and
shareholders. In designing these … contracts, shareholders or their representatives establish
pay-for-performance sensitivity in the context of other governance …