increased wage comparisons within firms with geographically-dispersed managers — firms with the greatest information frictions … prior to the rule change. We report three changes related to compensation after 1992 for division managers. First, within … firms with dispersed managers, division manager pay co-moves more with peer pay and is less sensitive to individual …

We study the role of transparency in a novel three-person profit sharing game in which managers and board directors … compensation, further reducing the revenue share that goes to shareholders. Competition to keep managers further magnifies these …