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In this paper we describe the important features of executive compensation in the US from 1993 to 2006. Some confirm what has been found for earlier periods and some are novel. Notable facts are that: the compensation distribution is highly skewed; each year, a sizeable fraction of chief...
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, while the most able managers obtain a wage increase, less able managers are faced with a reduction in wages. Hence our model …
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particularly strong negative impact on R&D. This confirms the hypothesis that incentive mechanisms lead managers to focus on more …
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