We investigate the role of Relative Performance Evaluation (RPE) theory in CEO pay and turnover using a product … affecting the firm and its peers) while evaluating CEO performance and that the extent of filtering increases with the number of …

. Having different goals for the same performance metric enables us to assess their relative importance in incentivizing CEOs …, suggesting the use of easier goals to compensate CEOs while maintaining the appearance of pay-for-performance. The results … highlight the importance of considering both sets of performance goals simultaneously when evaluating their incentive effects …

if it informs him of his own performance and, thus, induces fluctuations in his expected compensation. Monitoring …, however, may be valuable as it improves immediate production decisions. This paper shows that the employee's past performance … discrete bonuses after they do sufficiently well. By adjusting monitoring intensity and communication of performance, the …