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An examination of 268 CEO appointments in U.S. firms indicates that, on average, appointment of a better-quality CEO (a CEO who receives a pay premium ex-ante) is accompanied by an immediate positive revaluation of stock prices, and is followed by an improvement in firm performance. This...
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In comparison to the abundant evidence on CEOs' compensations, little is known about the compensation of other senior executives and on how the pay differential between CEO and other senior executives affects firm performance. We examine several potential explanations of the pay differential in...
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