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managers with different levels of talent are matched in rank order with banks of different capital. We set out the main … pay has been driven in large part by the increase in managers' options outside banking. Overall, after controlling for the …
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How to incentivize a manager to create value and be socially responsible? A manager can predict how his decisions will affect measures of social performance, and will therefore game an incentive system that relies on these measures. Still, we show that the compensation contract uses measures of...
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