misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private …: employees that create lower expected profits as managers have yet better promotion prospects. That finding still holds when the … firm owner optimally chooses the promotion rule, the degree of delegation, and wage payments to both employees and managers …

Using data from large-scale establishment surveys in Britain and France, we show that incentive pay for non-managers is …

contracts makes payments to third parties necessary. This paper studies incentive contracts with stochastic compensation, like … compensation. …