Incentive compensation induces correlation between the portfolio of managers and the cash flow of the firms they manage …. This correlation exposes managers to risk and hence gives them an incentive to hedge against the poor performance of their … using financial markets and shareholders cannot perfectly monitor the manager’s portfolio in order to keep him from hedging …

work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in … difficult times when the typical firm size shrinks. We find further that domestic and global competition for managers has … contributed to the rise in executive pay in Germany. Lastly, we show that CEOs in the banking sector are provided with incentives …

result of powerful managers setting their own pay. Others interpret high pay as the result of optimal contracting in a …

accounting standards. It is analysed how the incentives to overpay or evade taxes and to inflate book profits are influenced by …

with the evolution in executive pay and the market for managers during earlier time periods. A case study of General …

interaction with monetary incentives. We find that motivational talk significantly improves performance only if it is accompanied …