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We propose a family of incentive contracts that can attract some fund managers who are favored by investors and deter … explicitly on the utilities of the managers and investors nor have a menu of choices. The contracts have two crucial components …
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Although stock options are commonly observed in chief executive o±cer (CEO) compensation contracts, there is theoretical controversy about whether stock options are part of the optimal contract. Using a sample of Fortune 500 companies, we solve an agency model calibrated to the company-specific...
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