This paper presents a unified framework for understanding the determinants of both CEO incentives and total pay levels … endogenize both elements of compensation. The model's closed form solutions yield testable predictions for how incentives should … and over time. The theory also predicts a positive relationship between pay volatility and firm volatility, and that risk …

compensation plans on personal productivity. We study an international law firm that moves from high-powered individual incentives … towards incentives for "leadership" activities that contribute to the firm's long run profitability. The effect of this change …

underinvestment problem. We derive comparative static predictions for the equilibrium relationships between incentives from … compensation, investment, and firm performance for both cases. The relationship between firm performance and managerial incentives … to identify whether managers have private benefits or costs, we estimate the joint relationships between incentives and …

We derive a measure that captures the extent to which overlapping ownership structures shift managers' incentives to … possibility that the growth of common ownership has had a significant impact on managerial incentives …