The compensation of executive board members in Germany has become a highly controversial topic since Vodafone’s hostile … the literature on executive pay: the manager power hypothesis and the efficient pay hypothesis. We find support for the … work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in …

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 …

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

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

findings suggest that, when managers engage in wasteful capital expenditures, welfare may decline if the cost of investment is …

model with strategic interaction between managers and outside shareholders, we hypothesize that, while an increase in the …