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CEO Compensation : Evidence from the Field
Edmans, Alex; Gosling, Tom; Jenter, Dirk - 2021
We survey directors and investors on the objectives, constraints, and determinants of CEO pay. 67% of directors would sacrifice shareholder value to avoid controversy on CEO pay, implying they face significant constraints other than participation and incentive compatibility. These constraints...
Persistent link: https://www.econbiz.de/10013220138
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Attention-Driven Demand for Bonus Contracts
Dertwinkel-Kalt, Markus - 2019
In many markets supply contracts include a series of small, regular payments made by consumers and a single, large bonus that consumers receive at some point during the contractual period. But, if for instance its production costs exceed its value to consumers, such a bonus creates...
Persistent link: https://www.econbiz.de/10012890631
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Bank Bonus Pay as a Risk Sharing Contract
Efing, Matthias - 2019
We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that make external financing costly, the optimal contract between shareholders and employees involves some degree of risk sharing whereby bonus pay partially absorbs earnings shocks....
Persistent link: https://www.econbiz.de/10012892088
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Tax overpayments, tax evasion, and book-tax differences
Goerke, Laszlo - 2008
A strictly risk-averse manager makes joint decisions on a firm's tax payments and book profit declarations according to … making untruthful profit declarations, and (4) the tax rate. If the firm's owner or the government takes into account these … effects when pursuing his own objectives, the changes in tax payments and book profit declarations become theoretically more …
Persistent link: https://www.econbiz.de/10010264300
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The Rise of Individual Performance Pay
Kvaloy, Ola - 2007
Why does individual performance pay seem to prevail in human capital intensive industries? We present a model that may explain this. In a repeated game model of relational contracting, we analyze the conditions for implementing peer dependent incentive regimes when agents possess indispensable...
Persistent link: https://www.econbiz.de/10012778199
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Cross-Country Evidence on Teacher Performance Pay
Woessmann, Ludger - 2010
The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international...
Persistent link: https://www.econbiz.de/10013139418
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Incentives, Globalization, and Redistribution
Haufler, Andreas - 2020
We offer a new explanation for why taxes have become less progressive in many countries in parallel with an increase in income inequality. When performance-based compensation differentials are needed to incentivize effort, redistribution through progressive income taxes becomes less precisely...
Persistent link: https://www.econbiz.de/10012827110
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Incentive and Signaling Effects of Bonus Payments : An Experiment in a Company
Deversi, Marvin; Spantig, Lisa - 2023
, using a sample of managers and employees from a large company. We exogenously vary whether managers are informed about … matched to informed managers learn that the manager could base their incentive choice on cooperation levels. We find no … information. The absence of the signaling effect seems related to the perception of managers’ intentions, a mitigating but …
Persistent link: https://www.econbiz.de/10014259692
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Effort and Selection Effects of Performance Pay in Knowledge Creation
Ytsma, Erina - 2022
The effects of performance pay in routine, easy to measure tasks are well-documented, but they are much less understood in knowledge creation. This paper studies the effects of explicit and implicit, career concerns incentives common in knowledge work in a multitasking model, and estimates their...
Persistent link: https://www.econbiz.de/10014264447
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Pay Transparency Under Subjective Performance Evaluation
Fahn, Matthias; Zanarone, Giorgio - 2021
This paper studies how pay transparency affects organizations that reward employees based on their efforts (i.e., using “subjective performance evaluation”). First, we show that transparency triggers social comparisons that require the organization to pay its employees an “envy premium”....
Persistent link: https://www.econbiz.de/10013250033