We present a model where firms compete for scarce managerial talent ("alpha") and managers are risk-averse. When … managers cannot move across firms after being hired, employers learn about their talent, allocate them efficiently to projects … and provide insurance to low-quality managers. When instead managers can move across firms, firm-level coinsurance is no …

We present a model where firms compete for scarce managerial talent ("alpha") and managers are risk-averse. When … managers cannot move across firms after being hired, employers learn about their talent, allocate them efficiently to projects … and provide insurance to low-quality managers. When instead managers can move across firms, firm-level coinsurance is no …

If management has high private benefits and owns a small equity stake, managers and workers are natural allies against … a takeover threat. Two forces are at play. First, managers can transform employees into a "shark repellent" through long …''\ for the incumbent managers: to protect their high wages, they resist hostile takeovers, by refusing to sell their shares …