We model relative performance evaluation (RPE) when a Chief Executive Officer (CEO) has the power to opportunistically … benefits of receiving a higher bonus by economizing on expected peer-group performance. The Board of Directors (BoD) is less … CEOs choose to reduce common risk only partially and that BoDs choose to not implement RPE if expected peer performance is …

We compare evaluations of employee performance by individuals and groups of supervisors, analyzing a formal model and …-rater evaluations if groups rationally aggregate their signals about employee performance. Our controlled laboratory experiment confirms … performance. …

We compare evaluations of employee performance by individuals and groups of supervisors, analyzing a formal model and …-rater evaluations if groups rationally aggregate their signals about employee performance. Our controlled laboratory experiment confirms … performance. …

This study uses principal agent analysis to investigate how the principal’s use of performance measures in the agent …’s compensation contract are affected by (1) links between performance measures and (2) substitute and complementary characteristics … of an agent’s efforts. We show that the directional effect of changes in performance measure interrelations on linear …

and costs to delegated contracting, i.e., establishing a decentralized performance evaluation in addition to a centralized … performance evaluation may be detrimental to the principal. However, a decentralized performance evaluation is likely to be …

We examine the benefits of objective performance measurement in a field experiment conducted in a retail bank. At the … outset objective performance measures of pro fits in each branch were only available on the branch level and managers … to individual performance measures. We find a significant positive impact of objective performance measurement on effort …

We study S&P 500 firms’ disclosure of relative performance evaluation (RPE) details in their first proxy statement … use of RPE, using industry/size peer groups and weighting each peer’s performance by each peer’s correlation with …

were variously involved in related work on performance measurement and dynamic incentives, Peter, Jerry, Christian, and …

substantial negative impact on the probability that an employee's pay is performance contingent. …

-facilitating accounting information on the profit margins of individual products and (ii) whether they receive performance pay based on an …