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Executive Compensation : A Survey of Theory and Evidence

Edmans, Alex - 2017

This paper reviews the theoretical and empirical literature on executive compensation. We start by presenting data on the level of CEO and other top executive pay over time and across firms, the changing composition of pay; and the strength of executive incentives. We compare pay in U.S. public...

Persistent link: https://www.econbiz.de/10012455086

Tractability in Incentive Contracting

Edmans, Alex - 2009

This paper identifies a class of multiperiod agency problems in which the optimal contract is tractable (attainable in closed form). By modeling the noise before the action in each period, we force the contract to provide sufficient incentives state-by-state, rather than merely on average. This...

Persistent link: https://www.econbiz.de/10012463104

Dynamic Incentive Accounts

Edmans, Alex - 2009

Contracts in a dynamic model must address a number of issues absent from static frameworks. Shocks to firm value may weaken the incentive effects of securities (e.g. cause options to fall out of the money), and the impact of some CEO actions may not be felt until far in the future. We derive the...

Persistent link: https://www.econbiz.de/10012463326

A Calibratable Model of Optimal CEO Incentives in Market Equilibrium

Edmans, Alex - 2007

This paper presents a unified framework for understanding the determinants of both CEO incentives and total pay levels in competitive market equilibrium. It embeds a modified principal-agent problem into a talent assignment model to endogenize both elements of compensation. The model's closed...

Persistent link: https://www.econbiz.de/10012465278

Why Has CEO Pay Increased So Much?

Gabaix, Xavier - 2006

This paper develops a simple equilibrium model of CEO pay. CEOs have different talents and are matched to firms in a competitive assignment model. In market equilibrium, a CEO's pay changes one for one with aggregate firm size, while changing much less with the size of his own firm. The model...

Persistent link: https://www.econbiz.de/10012466300

The Dynamics of Inequality

Gabaix, Xavier - 2015

in top income inequality is driven by the rise of "superstar" entrepreneurs or managers …

Persistent link: https://www.econbiz.de/10012457305

Do U.S. Firms Have the Best Corporate Governance? A Cross-Country Examination of the Relation between Corporate Governance and Shareholder Wealth

Aggarwal, Reena - 2007

We compare the governance of foreign firms to the governance of similar U.S. firms. Using an index of firm governance attributes, we find that, on average, foreign firms have worse governance than matching U.S. firms. Roughly 8% of foreign firms have better governance than comparable U.S. firms....

Persistent link: https://www.econbiz.de/10012465838

Financial Globalization, Corporate Governance, and Eastern Europe

Stulz, Rene M. - 2006

For many countries, the most significant barriers to trade in financial assets have been knocked down. Yet, the financial world is not flat because poor governance prevents firms from being widely held and from taking full advantage of financial globalization. Poor governance has implications...

Persistent link: https://www.econbiz.de/10012466759

Private Benefits of Control, Ownership, and the Cross-Listing Decision

Doidge, Craig - 2005

high, controlling shareholders are less likely to choose to list their firm's shares in the U.S. because the higher … 31 countries. Using logistic regression analysis, we show that the control rights held by controlling shareholders, as … lower for firms whose managers have high levels of control and for firms whose controlling shareholder owns more control …

Persistent link: https://www.econbiz.de/10012467523

Why Do Countries Matter So Much for Corporate Governance?

Stulz, Rene M. - 2004

This paper develops and tests a model of how country characteristics, such as legal protections for minority investors, and the level of economic and financial development, influence firms' costs and benefits in implementing measures to improve their own governance and transparency. The model...

Persistent link: https://www.econbiz.de/10012467964