talented workers leads to an escalating reliance on performance pay and other high-powered incentives, thereby shifting effort … incentives downward in order to extract rents. More generally, as declining market frictions lead employers to compete more …, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …

A key input to inventive activity is human capital. Hence it is important to understand the monetary incentives of …

closed form). By modeling the noise before the action in each period, we force the contract to provide sufficient incentives …

This paper presents a market equilibrium model of CEO assignment, pay and incentives under risk aversion and … regulation) do not affect pay. The strength of incentives depends only on the disutility of effort and is independent of risk and … risk aversion. If the CEO affects the volatility as well as mean of firm returns, incentives rise and are increasing in …

instrument for addressing the agency problem between managers and shareholders but also as part of the agency problem itself … managers. As a result, managers wield substantial influence over their own pay arrangements, and they have an interest in … reducing the saliency of the amount of their pay and the extent to which that pay is de-coupled from managers’ performance. We …

rent extraction might lead to the use of inefficient pay arrangements that provide suboptimal incentives and thereby hurt … constraints that act on these processes, leave managers with considerable power to shape their own pay arrangements. Examining the …

We provide evidence on the match between firms, managers and incentives using a new survey designed for this purpose … implicit incentives they face and on the firms they work for. We model a market for managerial talent where both firms and … managers are heterogeneous. Following the sources of heterogeneity observed in the data, we assume that firms differ by …

relationship between firm age and employee compensation as well as firm age and firm productivity suggest that there may be at …