compensation plans on personal productivity. We study an international law firm that moves from high-powered individual incentives … towards incentives for "leadership" activities that contribute to the firm's long run profitability. The effect of this change …

executive officers. However, firms are run by teams of managers, and a theory of the firm should also explain the distribution …Empirical research on executive compensation has focused almost exclusively on the incentives provided to chief … of incentives and responsibilities for other members of the top management team. An extension of the standard principal …

Stock-based compensation is the standard solution to agency problems between shareholders and managers. In a dynamic … managers to work harder, it also induces them to hide any worsening of the firm's investment opportunities by following largely …-valued while managers hide the bad news to shareholders. We find that a firm-specific compensation package based on both stock and …

What determines CEO incentives? A confusion exists among both academics and practitioners about how to measure the … strength of CEO incentives, and how to reconcile the enormous differences in pay sensitivities between executives in large and … small firms. We show that while one measure of CEO incentives (the dollar change in CEO wealth per dollar change in firm …

We derive a measure that captures the extent to which overlapping ownership structures shift managers' incentives to … possibility that the growth of common ownership has had a significant impact on managerial incentives …

relationships and on how firms provide incentives to employees. This literature has been very successful in generating models and … conform to theory. We survey some literature in this area and suggest areas for further research …

theory of agency, notably income insurance and multi-task considerations, also shape pay policies. The conclusion we draw …

of executive incentives. We compare pay in U.S. public firms to private and non-U.S. firms. We then critically analyze …

Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them …, real-world firm managers consistently say that they are maximizing something else entirely: earnings per share (EPS …). Perhaps this is a mistake. No matter. We take firm managers at their word and show that EPS maximization provides a single …